A Reverse Mortgage unknown to many, can be used by anyone for any reason. As long as you own your home, have adequate equity and are of at least the healthy age of 62 or better, you may be able to qualify for a Reverse Mortgage.
There is nothing that says what you are or are not allowed to spend the money on. Pay bills, by a car, spoil your grandkids, fix up the house or even take up underwater basket weaving. The choice is yours. Below are some common uses for taking out a Reverse Mortgage.
Extra Retirement Income – Let’s face it. For many Americans, we don’t make it to retirement with as much money as we would like or need. Some had great retirement accounts before the economy tanked. Some had absolutely nothing and are living on just Social Security.
Your home is likely the single largest investment you made. You can use the equity and convert it to cash to add to your income. Many older Americans are just barely making it by. And most choose not to share this fact with friends and family because of the dignity factor.
A Reverse Mortgage can help give you back your independence and dignity by helping you to meet your financial obligations. The increasing costs of healthcare, prescription drugs, gasoline, and everything else have had huge impacts on the financial lives of hundreds of thousands of seniors across the country.
Home Improvement, Upgrades, Remodeling – Add that extra room, Upgrade your Kitchen or Bath, New Carpet, New Roof, Walk in Tub, you decide! We all want to spice up life a bit. Bringing your home up to modern style can bring a smile to your face and add new life to your home.
Estate Planning – Give money to your kids now, rather than after you die. Wouldn’t be better to share it with them while you’re alive and enjoy the act of giving? Wouldn’t it be nice to SEE your great grandchild ride the bike you bought him or her? Wouldn’t it be nice to see your grandson going to college with the money you gave them? You can’t do that after you die!
If you have a large estate, you can use the interest accrual to offset Estate Taxes after you pass away. *Seek legal advice from an Estate Planning Attorney on the details of this.
Prevent Foreclosure – You may be able to use a reverse mortgage to prevent losing your home. Even if you are a slightly upside down in your equity position, a lot of banks and lenders have been willing to accept a less than owed payoff versus going through an entire foreclosure or short sale procedure. It costs them less, and you get to stay in your home FOREVER, without a payment. You can stop foreclosure proceedings in many cases if you are approved for a reverse mortgage. Speak to a Reverse Mortgage Professional about your situation to see if this may be an option.
Luxury Spending – Yes, believe it or not, some people just want to DO MORE during retirement. Do the things you always wanted to do, but couldn’t afford. Buy that new car, travel to Paris, second honeymoon with the Misses, whatever you want the money for, it’s yours to do whatever you want with. There are no limitations on what you can use the money for.
As you can see, a Reverse Mortgage can be used for just about anything. The real issue comes down to YOU. Does it make sense for YOU.
If you have any questions about reverse mortgages, you can ask a question or leave a comment below, give us a call or click the green “help” tab on the right side to chat live with someone.