One of the more common choices among borrowers is to utilize a reverse mortgage to pay off their existing mortgage. This can increase your immediate funds available or cash flow since a reverse mortgage will not require the borrower to make monthly mortgage payments. This product is available on a primary residence only, the amount you are eligible for is determined by factors including date of birth and appraised value of the home.
If the amount available on a reverse mortgage exceeds the amount required to satisfy an existing mortgage, that equity can be available at a predetermined time and in various forms including cash, a line of credit or structured payments. As with all mortgages you will be responsible for keeping taxes, Home Owner Dues and Insurance paid and current.