Reverse Mortgage UsesEven though the money from a reverse mortgage/HECM loan can be used in anyway a senior borrower wishes, we have compiled some of top uses of reverse mortgage money.
- Long-Term Care
As seniors age, more and more health issues may complicate their daily life. As a result, seniors may be forced to pay for long-term care. Long-term care does not come cheap and many seniors are simply not able to afford it without the help of either family members or government assistance. If those options are not available or not enough, a reverse mortgage may be a health option.
- Avoid Foreclosure
Many seniors don't realize that a reverse mortgage may be used to actually prevent foreclosure. If there is enough equity in the home and the senior is behind on mortgage payments, a reverse mortgage could ensure that the senior is able to stay in the home as well as possibly receiving additional monthly payments from the mortgage.
- Home Improvement
Senior homeowners may also use the funds from a reverse mortgage to spend on home improvement. Home improvement could be anything from making the home more senior friendly such as adding in ramps to adding in a new kitchen, fixing the roof or anything else to the home.
Many seniors who have worked their entire life and realize their final days are not too far away decide that they want to travel either to visit grandchildren or just taking a cruise around the world. A reverse mortgage can provide additional spending money while still allowing them to stay in their home.
- Pay-off Debt
Reverse mortgage rates are relatively low when compared to other debt such as bank loans or credit card debt. As a result, a reverse mortgage may be a good option to pay off those bills to avoid racking up high interest every month.
- Daily Living Expenses
The housing crash and stock market crash a few years back had wiped as much as half of a senior's portfolio and retirement account depending on when they sold. As a result, their once safe nest may not be enough to pay for daily living expenses. A reverse mortgage may help to pay for daily living expenses such as utility bills, food expenses, housing and such.