Top 10 Reasons a Reverse Mortgage Might Be Right For You

09/08/2015 11:51 am ET Updated Dec 06, 2017

With so many reasons to consider getting a reverse mortgage, it's always helpful to have a checklist. What follows are 10 popular reasons why people take out these home loans.

1. Get rid of mortgage payment: A lot of older Americans use the reverse mortgage to get rid of their existing mortgage payment, which frees up a large amount of monthly funds and helps them better balance their budget.

2. Renovate or repair home: Get that roof fixed, complete the basement and add rooms or upgrade your home as you've always wanted to do. With the right amount of funds in place, this is very possible in a reverse mortgage scenario.

3. Enjoy the finer things in life: If you have been putting off your dream vacation or your bucket list, with this extra influx in funds, you can finally pursue such idyllic endeavors.

4. Ease up your budget: With a surplus of funds, you won't have to fret nearly as much about your daily budget as you would normally have to do, and you can afford to go out to eat more and pay for unforeseeable expenses.

5. Be prepared: With a nest egg stashed away, you will be ready for whatever life brings you, and those stressful, out-of-nowhere expenditures that arise.

6. Consolidate debt: If you have piles of high interest debt, you can easily pay them down or off in full and free up your credit as well as budget.

7. Better manage disability: If you suffer from disability, the funds from a reverse mortgage can put you a position to better modify your home and personal care routine with more efficient devices and aids.

8. Get caught up on taxes: Back taxes can really take their toll with interest rates and penalties that add up fast. With the right amount of funds, you can wave goodbye to these worries once and for all.

9. Help your family out: You will be in a better position to help pay for college, provide monetary assistance or just travel to see your family more often.

10. Start a small business: If you are eager to break into your own venture, a reverse mortgage can be a great way to fund it.

Remember that a reverse mortgage is a very big decision. Be sure that you conduct ample research and attend free counseling sessions to make sure one is right for your needs.

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