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Examples of
Various Uses of Reverse Mortgages |
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Cash out refinances to consolidate debts – Seniors can retire all of their
debts with a reverse mortgage. Even though we will not issue payoff
checks for individual installment and revolving debt, the senior can take
a lump sum distribution and pay off all of their current obligations. The
new reverse mortgage does not require the senior to make a monthly
mortgage payment. |
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Rising health costs remain a major problem for many seniors. A reverse
mortgage can provide much needed additional income to assist in purchasing
prescription drugs, hospice care or general medical expenses.
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Provide additional cash to make repairs to their home without the need to
use their savings or take out an additional loan with monthly payments. |
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Generating another stream of retirement income, eliminating the need to
draw down their savings and investment plans. |
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For seniors that want to purchase a smaller home in retirement, they can
use the reverse mortgage to purchase a home, eliminating the monthly
mortgage payment. The remainder of the equity from selling their previous
home can be invested or used for other purposes. |
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Recent data indicates that the purchase of vacation homes is growing at an
extremely fast pace. Seniors desiring to purchase a second home may
refinance their primary residence and perhaps be able to purchase their
vacation home without having to take on another mortgage payment. |
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For seniors that want to purchase a smaller home in retirement, they can
use the reverse mortgage to purchase a home, eliminating the monthly
mortgage payment. The remainder of the equity from selling their previous
home can be invested or used for other purposes. |
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In markets where seniors have experienced rising real estate taxes and
home owners insurance expenses, and risk having to move out of the home, a
reverse mortgage can provide a line of credit to manage these expenses and
allow the homeowner to remain in their home. |
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