I don’t believe I’ve ever met anyone throughout my entire life who wouldn’t want an additional income stream.
We’re not talking about another job here. No, this is passive. Just extra cash flowing into your account each month.
So, if you’re ready for a bonus income stream right now without having to make any loan payments, it’s time to choose one of six ways to receive your money…
Let’s get to the fun part first, shall we?
Before explaining how to get this additional income stream, I’m going to show you the six choices you have for receiving this money…
1. A single lump sum
2. Tenure – this comes in the form of equal payments each month for as long as you or your partner lives in your home
3. Term – this comes in the form of equal payments for a fixed number of months
4. Line of credit – this allows you to take cash if and when you need it, with some added benefits
5. Modified term – a mixture of credit and the “term” option.
6. Modified tenure – a mixture of the credit and “tenure” option.
Each of those payment plans could be available to you right now…if you decide to take advantage of a reverse mortgage.
Wait! Even if you already have some preconceived ideas about a reverse mortgage and your ability to get one, let me share the facts with you so you can see if it’s right for you…
So, what is a reverse mortgage?
Reverse mortgages were created to provide an additional income option for retirees. In essence, you’d relinquish the equity in your home for one of those six forms of payment listed above, giving you an extra income.
Think of it as the opposite of regular mortgage. So, instead of you making payments to the bank over time, the bank is now making payments to you for the equity in your home.
And it’s something you can do right now if you can check these four boxes:
- Must be at least 62 years of age
- There must be enough equity in your home for the reverse mortgage to make sense
- The lender in the reverse mortgage must be the first lien holder
- Your home must not be a co-op or in a building where there are more than four housing units. Manufactured homes built before 1976 are also ineligible.
And reverse mortgage incomes are normally treated as loan advances by the IRS, so you don’t have to worry about this as taxable income in most cases!
So, if you can check those boxes above and are ready for an additional income stream, it’s time to see how to get started on your reverse mortgage…