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How You Can Use the Money You Receive

 

Here is the most important reverse mortgage information you need to know:

The money you get from a reverse mortgage is actually money you already had, money that was in a sense sitting unused in your home in the form of home equity. If you think of it that way, it's easy to understand why you can use the money you get for almost anything. Here are some of the most popular uses for reverse mortgages:

 

Paying off an existing mortgage.    

With a reverse mortgage you will pay off your exisiting mortgage and completely eliminate the need to make required monthly mortgage payments, giving you more disposable income each month.

Pay off existing debts.  

You can use the extra income to pay off anything you'd like from credit cards to personal loans and auto loans. Please review all loan agreements.               

Note: Consolidating debt may result in higher overall interest cost over the life of the loan. Consult your financial advisor on paying short term debt with your mortgage loan.

Adding to your monthly income.

You can take the money from a reverse mortgage as a monthly payment to supplement your existing income, or you may choose a line of credit or a lump sum of cash.

Paying for home maintenance or repair.    

Your home is probably your most valuable asset and you can use the reverse mortgage money to maintain, or possibly increase its value by renovating and updating. 

Creating a cash reserve for emergencies. 

Many people like the feeling of security they get from having a financial "cushion". It's peace of mind to know if emergencies pop up, and they do, that you have a reserve fund sitiing there for you to go to.  

Providing funds for long-term care insurance or other financial tools.

Freeing up cash with a reverse mortgage may help you afford components of a financial plan such as home health care or long term insurance.

Helping family members or loved ones financially.

You can also use your money to help loved ones such as paying for tuition or establish an education fund for your grandchildren, help a child buy a new house or just use your reverse mortgage to give gifts to the people you care about. The choice is yours.

Lastly, and perhaps most importantly, you'll be able to afford special things you've always wanted to do. Maybe  it's traveling or just enjoying a special hobby. Don't let lack of money keep you from doing the things you've always dreamed of doing. A reverse mortgage can make them possible.