1) Single woman receiving $1400 in fixed income and limited savings has a $900 mortgage payment. This person can eliminate her mortgage payment to create more monthly cash flow.
2)A 62 year old man has recently retired and applied for SSI. His SSI income will be substantially lower than his previous job. Eliminating his mortgage payment might be an option to offset the loss of monthly income.
3) A 65 year old man would like to purchase a home but has a low fixed monthly income. With a significant down payment, this man can purchase a home without having to worry about making a monthly mortgage payment.
4) Couple with a combined income of $4200, a mortgage payment of $1800, a $500 car payment, and a $150 credit card payment. The couple is going to sell their home in a few years but would like to lower all of their monthly payments in the mean time. Although these folks can fairly easily keep up with all their payments, they can eliminate their mortgage payment and still make a profit from the sale of their home in a few years. There is no prepayment penalty so the homeowners remain in full control of their situation.
5) A couple have a small loan balance left on their mortgage. By doing a reverse mortgage, they can eliminate their mortgage payment, take out cash in a lump sum, do a line of credit, a scheduled monthly annuity or a combination of the above. No matter which option they pick, they will never have to make another monthly payment as long as they occupy the property as their primary residence for most of the year.