Increasing Cash Flow in Retirement
A smart way for many seniors to utilize this equity they own in their home is to use a reverse mortgage to pay off their current forward mortgage. In this situation, many seniors are trying to stay in their home, but due to a fixed or decreased income in retirement, they do not have the proper cash flow. This results in the question, how do I increase my retirement cash flow?
When a senior gets a reverse mortgage, their forward mortgage must be paid off with the reverse mortgage. In a Reverse Mortgage, payments are not required. As a result, that monthly cash outflow that seniors have is extinguished. Beyond just this, seniors may also get access to cash that they can take as a lump sum, in a line of credit, or as monthly payments. Thanks to this, many seniors find themselves in significantly improved financial situations after they get a reverse mortgage.
How this Increase in Cash Flow Can Help you in Retirement
Many seniors are working with fixed incomes in retirement from Social Security and/or pension. This restricts their ability to do many of the activities that they once enjoyed or even luxuries that they hope to have in retirement. Eliminating that forward mortgage payment can free up cash flow for seniors. Due to this, seniors are able to more comfortably live in their home and do many things they were not able to previously. Here are some examples of benefits that many seniors see with this increase in cash flow:
- Improve, repair, or even remodel your home
- Secure a fixed monthly income for 5 years or the rest of your life
- Add an additional source of assets for retirement with an available line of credit
- Give to your children, grandchildren or causes near to your heart
- Have regular dinner dates, take vacations, join the golf/tennis club
- And many many more!