With a reverse mortgage, people over 62 can get money from the value of their home.
The homeowner can do whatever they want with these funds.
Some people have used the money to pay for long-term care or to fix up their homes.
Most homeowners don't have too much trouble getting these funds.
The money is almost free because, besides the fees, most mortgages won't be paid back over the life of the homeowner.
When getting money from a reverse mortgage, there are several ways to get paid. Most of the time, you can pick one or more of them depending on what you need.
- Getting paid a set amount over a set number of years: With this option, the homeowner will get payments over a set amount of time, like 10 years. This could be a great way to keep track of money over time.
- Getting a set amount paid to the homeowner every month until they die or move out permanently: Getting monthly payments gives the homeowner peace of mind that they won't run out of money before they die.
- Getting a credit line. A line of credit is a way to get money and pay it back to the lender. A certain amount could be taken out as needed to make repairs or pay a bill.
- Getting your money all at once: The money from a reverse mortgage is usually given to you all at once. You will get one payment that is equal to your home's value.
It's up to you to find the right kind of terms for your needs.
Think about what you need, how much money you will need, and when you will need the money. Some homeowners got a lump sum and put it in an account until they needed it. The money is yours, and there are no rules about what you can do with it.
