The government-insured reverse mortgage product can be used in a variety of ways to help seniors age in place during retirement.
Here are three little-known ways that seniors can use reverse mortgages:
- Purchase a New Primary Residence (HECM For Purchase) - One of the best features of the HECM program is the ability to purchase a home and take out a reverse mortgage in one transaction. By doing this, borrowers can purchase their dream home during retirement and not be required to make a mortgage payment while they remain in the home.
- Purchase a Second Home - By utilizing a reverse mortgage on a primary residence, many borrowers decide to purchase a smaller, second home in a different part of the country. By using the equity in your primary residence, you may add a second home in a warmer climate, or that is closer to family and friends. You must live in your primary residence at least 6 months out of the year for this to work.
- Fund In-Home Care - The use of a reverse mortgage to fund in-home care has become popular over the last few years. Borrowers can utilize a reverse mortgage to establish a monthly payment that will contribute to care costs. This can be a more affordable alternative to selling the home and moving into an assisted living facility, which costs $3,450 per month on average according to the 2013 Genworth Cost of Care Survey.
Would you like to see how much you could be eligible for? Estimate Your Current Reverse Mortgage Loan Amount.