Home ownership is a dream of many people. When we do have a home and it is paid for, one of the last things that we want to do is go back to a house payment. However, sitting on your homes equity until you die or until you are too old to enjoy it may not seem like a good idea. One way that you can benefit from all of your hard work is to look into and understand the benefits to a reverse mortgage.
One of the first things that you should know is that a reverse mortgage gives you the opportunity to tap into your home’s equity without selling it, refinance or paying off the loan. You can access this in different ways such as getting tax-free cash advances and even get advantageous loans for equipment or other large purchases.
What are the benefits of a reverse mortgage?
You get the chance to tap into your home’s equity. This is a major one. For years you have been paying and paying and building up a return on your investment. However, unless you sell your home or do other refinancing you can’t get any value. So, if you have this money, why not tap into it?
You have the potential to qualify for a large one-time tax-deductible payment from the government that could be used for those things you’ve always wanted such as retirement, purchasing another home or even paying of some medical bills.
When you get money out of your old home, you can purchase a second or a third. This way you can rent them out and gain an extra income or you can reinvest it. Those that do this become wealthy because they are working money and not working for the money.
Once you do access all the money from your mortgage you want to make sure that you have a plan. Simply taking money out doesn’t mean you did a wise thing. Planning and preparation are good things when it comes to managing your money and your greatest investment, your home.