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Different uses for reverse mortgages

Reverse mortgages are a way for seniors (age 62 and up) to tap into their home equity to pay for living expenses. But there are also a few other ways homeowners can use their reverse mortgage:

uses for reverse mortgages

1. A new wave of inheritance:

Your home equity is a major component of the inheritance you will leave behind for your family Rather than worrying about if your heirs will misspend the inheritance, you can take your reverse mortgage now and use the money in ways that you dictate.

Perhaps you want to invest your grandkids’ college education or take your entire family on a vacation on a cruise or a beach house in a tropical location.

2. Ensure your health needs are taken care of:

You may already worried about the costs of your prescriptions and copays from your visits to the doctor. But what about wanting to live at home when you are older when you know you will need some outside assistance and your family lives far away?

You may consider getting a home attendant or nurse to take care of your needs and they are not cheap. You should consider taking a reverse mortgage if you do not believe you will be able to afford one and you still want to live at home.

3. Get out of foreclosure:

If you have equity in your home but you cannot afford to make payments, you can get a reverse mortgage and get yourself out of a financial bind such as a pending foreclosure or if you just filed for bankruptcy. If you feel like you are in a bad situation, you should consult a bankruptcy, foreclosure, or real estate attorney or a financial planner or accountant to get advice on this option.

Taking out a reverse mortgage is a big decision and you should definitely educate yourself before you pull the trigger. Here are a few articles on reverse mortgages:

What you should know about reverse mortgages

Three surprising ways to use a  reverse mortgage

If you would like to discuss ways you can improve your home to enhance the value of your home to prepare for a reverse mortgage, give us a call at (816) 606-7393 or contact us here.

  1. RizzenRizzen11-27-2012

    The thing that scares me about reverse mortgages is that for an older person, you are essentially betting you won’t make it to the end of the mortgage. Otherwise, what happens if the individual makes it to the end of the reverse mortgage, where do they go?

  2. It sounds like a reverse mortgage could be a good way to get out of a bind, especially for a senior.

  3. It’s definitely nice to have options, but you should certainly be sure that you know all of the ins and outs of a financial exchange before it goes down. If you owe money it’s unlikely that borrowing more money is going to fix your problem. It’ll only postpone and compound it.

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