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Benefits of a Reverse Mortgage

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One benefit of a reverse mortgage loan, is that there are no restrictions on how the money is spent. The money that you receive from a reverse mortgage, is equity that you built up in your property, and if you get a reverse mortgage – you can spend it on the things you need to help fund your retirement. If you have received, or are interested in obtaining a reverse mortgage loan, here is a list of 10 things people can do with their Reverse Mortgage proceeds.

1. Travel

For the first time in many seniors’ lives, they finally have the time to do the things that they have always wanted. A trip to Italy, Greece or China may have always been on your bucket list and with the funds from a Reverse Mortgage, you may finally have the opportunity to travel the globe or afford a new RV to travel cross country. Maybe you want to take your whole family on an Alaskan cruise or to see the Eiffel Tower. Either way, your funds from a Reverse Mortgage are yours to spend as you please.

2. Home Repair

If you have been living in your home for more than 10 years, your home might be in need of some updating, remodeling or just a repair to fix a leaky roof. Many seniors use the funds from a Reverse Mortgage to update their homes, such as building a patio, remodeling their kitchen or make it more accessible in their older years. Most intend to spend the rest of their lives in their home and they should try to make it as comfortable as possible.

3. Invest in Grandchildren’s Education

The cost of going to college has skyrocketed in the last 15 years. With job prospects not what they once were, it has become harder and harder for young people to afford the staggering amount of student loan debt after college. Some grandparents use their proceeds from their Reverse Mortgages to invest in their grandchildren’s higher education or assist them in paying off their student loans.

4. Pay-Off Debt

Retiring debt-free can be a lifelong goal for many people as they want to be able to enjoy their golden years without the stress of bills. You can use your Reverse Mortgage loan to pay off your existing mortgage, credit card debts or other loans you may have. A debt-free retirement can be achieved with assistance of a Reverse Mortgage.

5. Daily Living

Inflation has been on the rise and the cost of living is not what it once was. Some seniors use their Reverse Mortgage funds to take care of day-to-day living expenses like groceries, utilities and other recurring expenses.

6. Medical Bills

It seems like everything is more expensive these days, especially healthcare. Medical bills can increase related to all the health issues that come with aging. You can ease your financial burden by paying for doctor visits, prescriptions and other healthcare related expenses with the funds from your Reverse Mortgage.

7. Long Term Care

Home health care allows seniors to stay in their homes as long as possible with the assistance of a caregiver or nurse. Using funds from Reverse Mortgage can allow you to maintain your independence and privacy in the comfort of your own home.

8. New Toy

Have you been dreaming of a cherry red convertible, an RV to go camping with or a boat to sail on the open waters? Depending on the amount you qualify for, you may be able to afford that toy that you have always dreamed of owning.

9. New Home or Downsize

Some seniors are looking forward to living closer to family, or they may want to downsize to a lower maintenance home, especially after all their children leave the nest. Whatever the decision may be, the HECM for Purchase program allows seniors to purchase a new principal residence and obtain a Reverse Mortgage in one transaction.

10. Investments

You can use Reverse Mortgage payments to make investments of your choice, which could possibly appreciate in time. Contact your financial advisor for investment ideas and/or advice before you make the decision to invest.

These are just a few examples of what you can do with your Reverse Mortgage loan. What are some other ways that you would use your reverse mortgage loan?

If you want more information regarding reverse mortgages, you can speak with an advisor at 1-888-808-8486.

Interested in a reverse mortgage? Visit this Reverse Mortgage Calculator to help determine your estimated proceeds. 

 Read Related Articles:

5 Ways You Can Use Your Reverse Mortgage

Reverse Mortgages Are Not Just a Last Resort Solution

Image courtesy of [coward_lion] / FreeDigitalPhotos.net

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