The reverse mortgage is one of the most powerful tools created for senior citizens. They can strengthen your financial plans by filling in the gaps, and help you manage your cash flow to deal with declining health and ability. Reverse Mortgages allow the home to act as a source of tax-free income, or to utilize as an emergency fund.

A reverse mortgage enables homeowners 62 years of age and over to convert part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes payments to the homeowner.

The reverse mortgage is an excellent financial planning tool that is used by homeowners from all walks of life to enhance their retirement. While some people have needed a reverse mortgage more than others, the growing popularity of this product is evidence of its benefit in a wide array of financial circumstances.

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