Myth or Fact – Can I Get a Reverse Mortgage to Help My Financial Troubles?

Reverse Mortgage Fact: Reverse Mortgages are great financial tools and can help pay off debt, home repairs, or health expenses.

A reverse mortgage can help at retirement.  If you own your home outright, or have a mortgage balance.  You can tap into that equity without selling. You could be eligible to use the equity in your home to get a credit line, or monthly allotment, and not have to make monthly repayments, which could ease the pressure if bills are piling up.

Say you’re 75, your home’s worth $350,000, and you don’t have a mortgage.  If you’re short $2,000 a month for living expenses, taking that as monthly payments could plug the gap. Plus, you stay in your home, which might be cheaper than selling it and having to rent.

When a Reverse Mortgage Might Be Suitable:

• • You need supplemental income:

• • • • If your retirement income isn’t sufficient to cover your expenses, a reverse mortgage can provide a source of funds.   

• • You plan to stay in your home:

• • • • Reverse mortgages are best suited for those who intend to remain in their homes for an extended period.   

• • You have limited other assets:

• • • If you have minimal savings or other investments, a reverse mortgage can help you access your home’s equity.   

Reverse mortgages can be a useful financial tool for eligible seniors looking to supplement income, pay for healthcare, or cover living expenses, but they also come with complexities that should be thoroughly understood before proceeding.

Learn more about eligibility requirements for a reverse mortgage, situations where a reverse mortgage is best used, and common myths around reverse mortgage that we debunk with facts