Top 20 reasons to get a reverse mortgage
The Reverse Mortgage program has garnered a lot of negative attention over the years as being a expensive, equity stripping product that has very little benefits to the senior homeowners. With all of the attention being focused on the negative impacts, senior homeowners still don’t fully understand the many benefits to obtaining a Reverse Mortgage. Below is the top twenty(20) reasons we compiled, in no particular order.
- Pay off your existing mortgage to reduce your current monthly expenses.
- Re-model your home for any reason, including making it more “senior friendly”.
- Obtain a Home Equity line of credit (that grows) for any reason.
- Use for monthly bills and hold on to other assets while their value continues to increase.
- Cover monthly bills and avoid selling assets at low values.
- Help offset costs for health insurance during early retirement years until Medicare eligible at 65.
- Pay your Medicare Part B and Part D costs.
- Combine life tenure payments with Social Security and income generated by assets to replace your salary and maintain your monthly routine of paying bills from new income.
- Pay for your children’s or grandchildren’s college or professional education.
- Maintain a “standby” cash reserve to get you through the ups and downs of investment markets and give you more flexibility.
- Combine proceeds with sale of one home to buy a new home without a new mortgage and monthly mortgage payments.
- Pay for long-term care needs
- Fill the gap in a retirement plan caused by lower than expected returns on your assets.
- Pay for short term in-home care or physical therapy following an accident or medical episode.
- Pay for a retirement plan, estate plan or a will.
- Convert a room or basement to a living facility for an aging parent, relative or caregiver.
- Set up transportation arrangements for when you are no longer comfortable driving.
- Create a set aside to pay real estate taxes and property insurance.
- Delay collecting Social Security benefit until it maxes out at age 70 1/2.
- Eliminate credit card debt and avoid accruing new credit debt.
We Added 5 More reasons just for arguments sake!!
- Cover monthly expenses in between jobs or during career transition without utilizing other saved assets.
- Cover expenses and avoid capital gains tax consequences of selling off other assets.
- Purchase health-related technology that enables you to live in home alone.
- Pay for an Uber or Lyft account so you have mobility and access to appointments and social activities.
- Help your adult children through family emergencies.