You may use a Reverse Mortgage in your long term financial planning if you are younger than 62 years old.

Lets assume the following

1. You are 47 years of age.
2. You want to buy a $100,000.00 house.
3. You don't want to wait 30 years before your house payments are gone.
4. You can earn 6.75% on your investments.
5. A 30 year mortgage at 6.75% has a payment of $648.59 .
6. A 15 year interest only balloon mortgage at 6.75 % has a payment of $562.50 .

In 15 years your $100,000.00 house appreciating at 5% annually will be worth $207,789.82

At age 62 you take out a Reverse Mortgage to pay off your balloon mortgage and live in it with no payments due till you permanently leave the residence.

If you put the difference in the 30 fixed payment and the interest only payment ($86.09) in an investment yielding 6.75% every month at age 62 you would have accumulated $26,702.07 for retirement.

So their you have it, a Reverse Mortgage strategy to have no house payments in 15 years and $26,702.07 for retirement.

Eben Johnson www.mireverse.com