Using Your Money

The money you get from a reverse mortgage is actually money you already had, money that was in a sense sitting unused in your home. If you think of it that way, it's easy to understand why you can use the money you get for almost anything. Here are some of the most popular uses for reverse mortgages:

• Pay off existing debts, anything from credit cards to home equity lines of credit to car loans. Please review all loan agreements.
• Paying off an existing mortgage. You can use the money to pay off your first mortgage and completely eliminate the need to make monthly mortgage payments, giving you more disposable income each month.
• Adding to your monthly income. You can take the money from a reverse mortgage as a monthly payment to supplement your existing income, or you may choose a line of credit or a lump sum.
• Paying for home maintenance or repair. Your home is probably your most valuable asset and you can use the money you get to maintain, or possibly increase its value.
• Creating a cash reserve for emergencies. Many people like the feeling of security they get from having a financial "cushion".
• Providing funds for long-term care insurance or other financial tools. Freeing up cash with a reverse mortgage can help you afford components of a financial plan.
• Helping family members or loved ones financially. Pay for tuition or establish an education fund for grandkids, help a child buy a new house or just give gifts to the people you care about. The choice is yours.
• Being able to afford special things you've always wanted to do, such as travel or hobbies. Don't let lack of money keep you from doing the things you've always dreamed of doing.