What can I use the money for?
Pay the bills.
Everyone could use a little more money every month. With no monthly mortgage payments required, a reverse mortgage allows you to redirect the money you would use to pay the mortgage toward other things—everyday expenses, bills, credit card balances, or other debts.
Help pay for healthcare.
Today, many older adults want to “age in place,” so they can remain in their homes and not have to go to a senior community, an assisted living facility, or smaller house. The funds you receive from a reverse mortgage can help make it possible.
Plan for the future.
You can establish a line of credit to make sure that you’re better-prepared for unexpected expenses, or to help pay for long-term care. This financial “safety net” can help give you peace of mind today, and financial protection for the future.
Make updates to your home to fit your needs.
Making much-needed repairs, or modifications to fit your needs as you age, can help you live more comfortably and remain in your home for a longer period of time. A reverse mortgage can help make it easier to afford these updates to improve your quality of life.
Lower your taxable income.
You can avoid making taxable withdrawals from 401(k) or other retirement plans by replacing the money with tax-free reverse mortgage income.*
*Consult a financial advisor and appropriate government agencies for any effect on taxes or government benefits.
Help the ones you love.
You can use the equity in your home to help others. For example, you could use the proceeds from a reverse mortgage to help a child or grandchild with major expenses, such as college tuition or a down payment on their own home.