How Can You Use a Reverse Mortgage Loan?
Using a Reverse Mortgage Loan
There are few restrictions on how you may spend the money you receive from a reverse mortgage. When your reverse mortgage loan closes any existing mortgages or liens must be paid off. Remaining available loan proceeds may be used as you wish. After all, it is your money! It comes from the equity you have built up in your home over the years. You can spend your tax-free loan proceeds any way you’d like with no required monthly mortgage payments. But please note – during the life of the loan, you must remain current on your real estate taxes, hazard insurance, any other property charges, and abide by the loan terms.
Here are some ways clients have used their reverse mortgage loan:
Pay Off Your Current Mortgage or Home Equity Line
The pressure of monthly mortgage payments or the increase in mandatory home equity lines of credit payments can be so stressful that one’s quality of life is diminished. By obtaining a reverse mortgage loan to pay off your existing mortgage or home equity line of credit, you will eliminate the need for monthly mortgage payments thereby increasing your monthly cash flow.
Pay Your Bills
If you have credit card debt, unsecured loans or other bills piling up or lingering, a reverse mortgage loan can help you get out from under the monthly burden of making payments.
Be Able To Afford Your Real Estate Taxes & Homeowner's Insurance
For many of our borrowers, the ever increasing cost of real estate taxes and property insurance is financially crippling. A reverse mortgage loan has been the solution to this quarterly and annual expense, not by eliminating these expenses, but by providing funds to pay taxes and insurance when necessary.
Make Home Improvements or Needed Repairs
Since you’ll be staying in your home, now is a good time to make long overdue repairs, remodel your kitchen, bath or basement, or make enhancements to your decor. For some of our clients, funds were used to make their home handicap accessible. On occasion, a lender may require necessary repairs to be completed. With traditional loans, those repairs would need to be completed before the loan closes which is impossible if the borrower has no money. With reverse mortgages, those repairs may often be done after the loan closes and paid for from the reverse mortgage loan proceeds.
Assist Your Family
In tough economic times, we all want to be able to help out financially when our children or other loved ones are suffering. The money you’ll get from your reverse mortgage loan can be used to ease the financial pressure on family members. Or, perhaps an adult child may need hep with a down payment so that he or she can start their family history in their new home.
Pay Medical Bills
We all will face health challenges at some point in our lives. A reverse mortgage may be the solution to pay for hospitals stays, doctors, prescription medicines, at home care, or long-term care facilities. For many of our clients, they obtain a reverse mortgage line of credit to give them peace of mind knowing funds will be available if unexpected medical costs arise in the future.
Pay Tuition for a Child or Grandchild
The cost of college today is rising rapidly, yet a good education has never been more important. You can help bridge the gap between financial aid and college costs so that a child or grandchild will not be unduly burdened with education loans upon graduation.
Take a Vacation
You deserve it! For those seniors who are in a good financial position sometimes taking that bucket list trip, seeing faraway family members, or a warm weather getaway during the coldest winter months will bring joy. Its great to know you have the money to go where you please!
Save for a Rainy Day
Some reverse mortgage borrowers have no desire to use their funds today but instead want access to a “reverse line of credit” that continues to grow, while keeping funds readily available whenever they may need them. This gives peace of mind in case of an unexpected life event.
How will you spend your tax-free reverse mortgage money? Call us today at 877-499-7283. Or simply complete our easy-to-use web contact form to learn more about reverse mortgage loan options.