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Writer's pictureKevin A. Guttman

How to Switch Your Mandatory Mortgage Payment to an Optional Payment

Many senior homeowners still have a mandatory mortgage payment as they approach or are in their retirement years. For several decades they have made their mortgage payments on time, while working, raising their family and putting their children through college. As seniors living on a fixed income, their largest expense is their monthly mortgage payment.


Each month they struggle to pay their bills and maintain their lifestyle. What senior homeowners don't realize is that they may be living in the solution, their home! If a senior homeowner has at least 60% equity, they can legally eliminate or make optional their monthly mortgage payments.



Over the years, I have sat with many seniors at the closing table. They all sing the same tune when closing on a reverse mortgage, which is this: "Now I can sleep at night and don't have to worry about money."


For those senior homeowners who are fortunate enough to have more than 60% equity, their home can start paying them in a lump sum installment, monthly payments or a line of credit, all tax free. More on that in my next blog!


If you want to learn how a reverse mortgage can help you, let's chat by phone or in person.

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