Without a substantial nest egg, retirement years can be lean financial years for the elderly. Living on a fixed budget isn’t the most financially comfortable option.
So what happens if you need funds for treatment or still have the mortgage to pay? Here’s how you can make a Home Equity Conversion Mortgage (HECM) loan work for you.
Pay off your mortgage
You can use the money to pay off any existing debt, like the rest of the mortgage you own on your home. If you have no intention of paying the debt, then this is one way you could get out of having to make the monthly payments on your property. If you’ve got no heirs, then this is an entirely viable solution.
For your long-term care
If you think you’ll need long-term care or simply want to be prepared for the possibility, then taking out an HECM for purchase, a reverse mortgage loan, is a good idea. This way, you can afford the insurance costs of long-term care that you wouldn’t have been able to afford, much less buy, in the first place.
Take out a life policy
You can still opt for this option, regardless if the debt owed is more than the value of your home. Just make sure you buy a big enough cash policy and this should be easy enough to fix.
Repair your home
Replacing your roof or extensive damage to your property can run to millions. With a reverse mortgage, you can access the emergency funds you need to get your home back on track.
Cover expenses
Living on your social security benefits can be financially stifling. If you’re looking for a way to boost your monthly income so you can pay off your property taxes, homeowner’s due or even insurance premiums, you can thoroughly explore this financial tool to figure out if it’s the right one for you.
