 Sam
Site Admin
Joined: 21 May 2005
Posts: 280
Location: CALIFORNIA
116.97 Dollars($)
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 Posted: Fri Mar 26, 2004 4:52 am Post subject: How do people use the money received from a reverse mortgage |
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The way the money is used depends very much on the way the money is received.This money acts as a supplementary income for the senior citizens. If they have any mortgages attached to the collateral, firstly they would use the money to pay it off in full.
The remaining amount can be used for other purposes like:
- For home improvement and repairs
- For debt consolidation
- For paying off medical expenses
- For travel
- To pay taxes and insurance
- As an emergency cash reserve
- To improve or maintain the standard of living in spite of retirement
- Convert equity to liquid assets
- For household expenses
- Support family
- For a vacation
You should always remember that the reverse mortgage is an increasing loan, so you should not go in for a spending spree. You should use your income carefully especially if you have heirs and wish to leave your property to them.
But it is advised not to invest this money. It was originally intended to support the income less life of senior citizens so that they may be independent by utilizing the equity in their homes. This essence must be borne in mind while planning out your reverse mortgage. |
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