Common Reverse Mortgage Uses
In many instances, loans can only be used for specific purposes. For example, when you obtained the mortgage on the home in question, the only thing those funds could be used for was the purchase of that particular home. You will find that with a reverse mortgage, there are no requirements or limitations on how, when, or where you use the funds.
This means borrowers can use reverse mortgages for anything they might need. However, some of the most common uses (and needs that make seniors initially start considering these loans) include the following:
Paying off your existing mortgage
Remodeling your home
Retrofitting your home to fit limited mobility or increased safety needs
To pay for college tuition for children or grandchildren
To pay for health care if you are under 65
To cover ongoing living expenses
To pay Medicare Part B and Part D costs
To pay for long-term care needs
To help delay drawing Social Security until you reach 70 and are eligible for the maximum payout
To pay off credit cards and other revolving credit accounts
To offset losses in your other retirement funds
To prevent selling other assets to pay debts
These are just a small fraction of the uses that American seniors find for their reverse mortgage funds. Really, they can be used for anything that might benefit you, and there is no need to worry about repaying the loan until you leave the home or pass on.