Benefits
Reverse Mortgage Benefits
- Establish a “stand-by” line of credit that you can tap as needed. Unlike a traditional Home Equity Line of Credit (HELOC), a reverse mortgage line of credit cannot be reduced or revoked, as long as the terms of the loan are met. And the unused line of credit grows over time.
- Avoid selling investments at a loss in a “down” market
- Supplement retirement income with a steady stream of tax-free* funds
- Delay collecting Social Security, for a larger monthly benefit
- Pay for medical or long-term care costs
- Pay off an existing mortgage and/or other debts, to improve cash flow
- Finance the purchase of a more suitable home, with no monthly mortgage payments
- The ability to use your home equity to help maintain a more comfortable standard of living, in your own home.
- Tax-free* proceeds you can use however you choose.
- Great flexibility. You can take your proceeds as a line of credit; monthly advances for a set period of time; a monthly stream of funds for as long as you live in your home; a lump sum; or a combination of these options. You choose the plan that works best for you.
- No monthly mortgage payments. If you qualify and have an existing mortgage, home equity loan or any other type of debt, you can pay it off and improve your monthly cash flow, with no minimum monthly loan payments. (As the homeowner, you remain responsible for paying property taxes, homeowners insurance, and homeowner’s association dues if applicable.)