Living the Dream . . . No Mortgage Payment

42-15717839I remember as a young lad hearing about mortgage burning parties. It was the dream at that time. . .  to pay off the home prior to retirement and have no more mortgage payments. Today, though many in the younger generation have attempted to use home equity as leverage in creating wealth, seniors are continuing to live with the goal of paying off their home during or prior to retirement. This frees up cash so that they can afford to live a relatively similar standard of living in retirement as they had prior to retirement.

Reverse mortgages provide yet another option: Instead of waiting to payoff the last bit of mortgage balance, it allows them to take advantage of the freedom of having no mortgage payment . . .  gauranteed for as long as the home is the primary residence. In addition to having no mortgage payment, it allows them to use whatever is left over, as an emergency fund to take care of any of the surprises that life throws them.

For those who don’t have critical plans for the use of their equity after they pass, a reverse mortgage allows the benefit of realizing no mortgage payment coupled with a stash of cash to be used at the discretion of the homeowner. What a great alternative!

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One Comment on “Living the Dream . . . No Mortgage Payment”


  1. Quote: “In addition to having no mortgage payment, it allows them to use whatever is left over, as an emergency fund to take care of any of the surprises that life throws them.”
    There, you’ve said that. So this isn’t only for equity rich, cash poor seniors, but it applies to any seniors seeking for extra cash handy all the time.


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