If you still have a traditional mortgage, you may want to consider replacing it with a Reverse Mortgage. Doing so will immediately improve your cash flow by eliminating the requirement to make monthly payments. You’ll still retain the portfolio leverage the traditional mortgage provided, but you’ll reduce the amount you’ll need to withdraw from your taxable assets for living expenses. Moreover, the reverse mortgage credit limit may be large enough to provide access to additional cash, which can further supplement sustainable withdrawals or add to your net assets. You may also choose to make voluntary repayments to the reverse mortgage balance, which will slow its growth and increase the cash available for future draws. You can stop making payments at any time if cash becomes tight.
ABOUT THE Author
Michael Melody has been a Mortgage professional in Southern California since
1990. Now based in Huntington Beach, Kevin assists buyers and sellers of
residential property with all their financing needs, with a special emphasis on
"Old School" personal service. He uses his more than two decades of
experience in mortgage lending and residential Real Estate to take his clients
from start to finish on any type of transaction. Sellers can take advantage of
his intimate knowledge of financing to pre-screen buyers and offer creative
solutions for self-employed individuals, business owners and otherwise
well-qualified buyers who may not fit traditional lending guidelines. He also assists
homeowners looking to refinance to a better rate or lower payment, consolidate
debts or get cash for home improvements, and even families whose homes are
underwater can be helped under Fannie Mae's Home Affordable Refinance Program
(HARP) and Freddie Mac's Open Access Relief Refinance for owner-occupied
single-family homes, condos, manufactured homes, and 2-4 unit residential
income properties, as well as vacation homes, rentals and investment property.
Kevin is a proud veteran of the United States Air Force, and author of the 2001
book "What Lenders Don't Want You To Know."