Recently, Reverse Mortgages have been in the limelight of many media outlets as a positive way for seniors to help fund their retirement. The Today Show included a segment a few weeks ago that discussed reasons why seniors get a Reverse Mortgage. A Reverse Mortgage is a useful financial tool for today’s senior. It helps seniors to living a better retirement. Below are the top five reasons seniors get a Reverse Mortgage.
Top 5 reasons seniors are getting a Reverse Mortgage:
1. Pay off debt – When you receive a Reverse Mortgage, your current mortgage will be paid off, eliminating your current mortgage payment.* If there are funds left over you receive in payment in tax-free** cash which you can use for anything you want. Many seniors use those funds to pay off debts. Debts like high interest rate credit cards or a relative’s student loan debt. A Reverse Mortgage can be a very effective way to help reduce or even eliminate debt.
2. Pay hospital or medical bills – The rising cost of healthcare can put a tremendous demand on seniors living on a fixed income. On average, Medicare beneficiaries age 65-74 spend over $2,900 a year in out-of-pocket expenses. With a Reverse Mortgage seniors can use the money to pay for bills they may already have or they can use it as an emergency fund when needed to pay for medical expenses.
3. Make home improvements – Updating or remodeling the home to accommodate the way you want to live in your home for the next 10 to 20 years is another popular reason why seniors choose to get a Reverse Mortgage. Many seniors choose to update their bathroom to make it safer or easier to use. Updates like putting up guard rails or installing an easy to get into bath or tub help to make the bathroom a safer area. Another room that many seniors update is the kitchen. No matter what updates you have in mind that you would like to make to your home, a Reverse Mortgage can help fund the project.
4.Travel – Now that your working days are behind you, there is no better time to take a dream vacation. Proceeds from a Reverse Mortgage make it possible for seniors to take a dream vacation to exotic locations like Hawaii, Florida, Cancun, or even out of the country to places like Italy or France! You can also use the proceeds from your Reverse Mortgage to visit family members that may not live close to you.
5. Improve retirement –The number one reason seniors receive a Reverse Mortgage is because it helps to improve their retirement. Many seniors are living on a fixed income with steady stream of monthly bills like a mortgage, medical bills, insurances and many other bills. This leaves little room in the budget to do much of anything. With a Reverse Mortgage, that monthly mortgage is eliminated* giving seniors more income to do things they couldn’t afford to do before. A Reverse Mortgage can also help improve that nest egg. It can provide that security of knowing you have a way to pay for an unexpected bill.
The reasons seniors receive a Reverse Mortgage are endless; these are just the top five. Many seniors get a Reverse Mortgage to buy a summer house, help grandchildren with college expenses, or even start a new business. Whatever your retirement goal is, a Reverse Mortgage can help you achieve it.
If you are thinking about a Reverse Mortgage one of the first things you can do is check out One Reverse Mortgage’s calculator to help determine how much cash you can receive from a Reverse Mortgage. The next step is to call one of our licensed professionals who can walk you through the smooth and easy process of a Reverse Mortgage at (800) 442-6828.
Kristen Curzytek is a writer for the One Reverse Mortgage blog. One Reverse Mortgage is the largest reverse-only mortgage lender in America.
*Homeowner is still responsible for taxes, insurance and maintenance costs.
**Please consult with your financial advisor.