The following are some very common reasons to get a reverse mortgage these include getting rid of a monthly mortgage payment (you still have to pay property taxes and homeowners insurance), consolidating debt, supplementing retirement income, replacing lost income, and paying for long term care.
Using a reverse mortgage in this manner and for these purposes can be a great way to relieve financial stress, improve your standard of living, take better care of yourself, and enjoy your retirement.
If you do not have an immediate need for a reverse mortgage. I would highly recommend checking out the strategic uses of a reverse mortgage so you can see why it makes sense to get one now versus waiting.
Here Are the Most Common and Also Really
Good Reasons to Get a Reverse Mortgage
Get Rid of Your Mortgage Payment – One of the common reasons people get a reverse mortgage is so they no longer have a monthly mortgage payment. You still have to pay property taxes, homeowners’ insurance and other housing related expenses.
Freeing up $500, $1000, $1500 a month or more can be absolutely life changing for so many older Americans. It could allow them the cash they need for daily living expenses, allow them to live comfortably, retire, pay for healthcare, and reduce the financial stress that monthly payment causes. In my experience, this is by far one of the most common reasons to get a reverse mortgage.
Consolidate Your Debt – Consumer debt such as credit cards, car payments and medical bills plagues millions of older homeowners. Living on a fixed income makes it almost impossible to get these debts paid off. With a reverse mortgage, some or all of these debts could be consolidated into the reverse mortgage freeing up a tremendous amount of cash every month. This is a realistically the second most common reason to get a reverse mortgage
Pay for Long Term Care – If you or your spouse has a need for long term care the reverse mortgage is an excellent way to pay for the care that without needing to drain your savings or retirement accounts.
Home Remodel, Additions and Upgrades – If you want to remodel your kitchen or bathroom, need to get your home ready to age in place, want to do an addition or build a shop. The reverse mortgage is a great way to do that without using your savings or taking on monthly mortgage payments with a home equity loan or any other type of loan. I have helped many clients get a reverse mortgage for this reason.
Supplementing Your Retirement Income – Didn’t save enough for retirement or weren’t able to save at all? Is your current income just isn’t enough to meet your daily living expenses or live comfortably? You can use the reverse mortgage to supplement your income and improve the quality of your retirement life. Either through the use of a line of credit or by receiving monthly payments. This is also a common reason to get a reverse mortgage because people just don’t have enough money to live comfortable in retirement.
Replacing Lost Income – If you have recently lost a spouse, you also more than likely lost a significant source of income. The loss of income could have been from Social Security, wages, pension or a combination of these income sources. Through the use of a reverse mortgage, some or all of the household income could be replaced taking the financial stress out of your life.
Paying for Your Health Care – The amount of older Americans that skip doctor visits, don’t fill prescriptions or skip prescribed doses in order to make their medication last longer is staggering. Not seeking the medical care you need and / or not using medication as prescribed can compound medical problems requiring even more medical care.
A reverse mortgage can provide the funds you need to get proper medical insurance, afford better Medicare plans, as well as help pay for medical care and prescription costs. Take care of yourself now before you healthcare needs and costs spiral out of control. If your health isn’t a good enough reason to get a reverse mortgage, I don’t know what is.
Enjoying Your Retirement – You have worked hard all of your life. You deserve to have some enjoyment during this time and the reverse mortgage could provide that for you in a variety of ways. It could allow you to retire. It can provide the funds you need to enjoy your retirement. It can provide the funds to do the things you want to do during retirement. It could allow you to continue to afford and enjoy your hobbies. And it could put you in a position where you do not have to squeeze every penny you have.
These are all very common reasons to get a reverse mortgage. Your reason for getting a reverse mortgage could be completely different than any of these. This type of loan is a great tool that can help meet the financial needs of kinds of situations.