With the reverse mortgage program being popular with many seniors, one of the questions that many people ask is: “what are the most common uses of reverse mortgages?”
Reverse mortgages can provide seniors a means to access the built-up wealth in their homes and use it for just about anything.
What one may use a reverse mortgage for is directly dependent on the objectives of the borrower. The borrower’s objectives usually fall into two broad categories from which an almost infinite variety of sub-categories arise.
The two main categories are “Need” and “Want.”
Some people “need” a reverse mortgage to help pay bills and living expenses. After all, it is their money. They paid down, or paid off that mortgage on their home. Now in the later years they may need to pay off a mortgage or lien, pay off a bunch of high interest rate credit cards, pay for long term health care, renovate the old homestead, get a monthly check to supplement other retirement income, pay for energy saving enhancements to their home, or . . . well you get the idea.
Others, who have also paid off or paid down their mortgage may “want” a reverse mortgage to add some cushion to their retirement nest egg, buy a second home, send grandkids to college, set up a line of credit for their business, do some estate planning, or to do just about anything else one can imagine.
Regardless, the value of a reverse mortgage to the borrower is relative to the purpose for which it is to be put.
Again, it’s your money; it is delivered tax free; and, using a reverse mortgage to access the funds is the only way it may be done without giving up the home or having to make a loan payment.
Are There Any Restrictions on What I Can Do With the Money?
No. The only limitation is your imagination.Click to See the Latest Mortgage Rates»