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:
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: