Ways to Use a Reverse Mortgage Loan
The proceeds from a reverse mortgage loan is versatile, and can be used for almost any number of purposes in retirement.
Here are some examples of how you can use funds from a reverse mortgage:
- Cover daily living expenses.
- Renovate home to improve safety for aging occupants.
- Pay off existing mortgage to reduce monthly expenses.
- Pay for health care until Medicare eligibility at age 65.
- Maintain a line of credit for emergencies.
- Pay for your child’s or grandchild’s education.
- Buy and move into a more appropriate home.
- Pay for long-term care services.
- Pay for short-term recovery care or physical therapy after an accident.
- Fill the gap caused by lower than expected investment returns.
- Delay receiving Social Security benefits until 70.5 years old, when it gets maxed.
- Eliminate credit card debt.
Because there’s basically no restriction on how you use the funds from a reverse mortgage loan, you should not feel limited to just the examples presented above.