Benefits
A reverse mortgage benefits the older homeowner because it allows for a sense of financial security, depending on what the homeowner's needs and desires are. The funds that you receive are tax-free and can be used in any way that you choose. Here are some, but not all, of the many ways to use your reverse mortgage funds:
● Create a monthly income for life to
supplement other income such as social
security or pension plans
● Pay off debt, such as credit card or health (with the
reverse mortgage any
liens on the property are paid in
full at close of escrow)
● Secure finances for possible health emergencies in the
future
● Begin transferring your estate to your heirs to avoid
possible probate or
inheritance taxes
In addition to obtaining financial security, you retain full title and it will pass on to your estate, continuing to appreciate in value for as long as you own it.