Reverse mortgage have become quite popular among senior citizens. There are several reasons why people choose a reverse mortgage. Reasons vary from home improvement to clearing off debts, from covering daily expenses to supplementing current income. Medical bills or long-term health care are other reasons to get a reverse home mortgage. Let us take a look at some live examples of reasons why people choose reverse mortgage.
Home repairs and improvement is a popular reason to opt for a reverse mortgage. For example, a 70-year-old widow was waiting to get the roof of her home fixed and her cooking area needed some patching up to give it a better look. The woman opted for a reverse home mortgage and got sufficient money to complete her required repairs and improvements. Moreover, she was left with enough money to lead a more comfortable life with less financial worries.
Another preferred reason for a reverse mortgage is supplemental income or extra money. For example, a railway worker was barely able to live his life with the little money he had left. With a reverse mortgage, he simplified his life with an entitled payment of $600 per month. He used the money to keep his house and so viewed the additional income of $600 per month as a lifesaving gift. Many clients have also reported that they were able to go on enjoyable vacations with the extra money they obtained from a reverse mortgage.
Many retired people who find it difficult to pay their existing monthly living expenses prefer taking up a reverse mortgage. For example, a 67-year-old gentleman experienced a burden paying $1,250 per month for his previous mortgage. He was able to relax when he used a reverse home mortgage program to pay off his entire debt and get enough cash to enjoy the quality of life he always dreamt of.
A retired teacher had pursued a love of art throughout her decades teaching. After retiring, she wanted to create art full-time. She was invited to many art shows around the country but they required expensive travel. She wanted to continue to do what she loved, but it was cutting into her savings. A reverse mortgage paid off her existing mortgage and established a credit line of $200,000 that grows at 6.97%.
A couple had divorced. The agreement specified he would keep the house but split the equity with his ex-wife. He was in bankruptcy and slowly repaying debt to his creditors. He still owed $20,000 and the debt, coupled with the divorce, was taking a mental toll. To get back on his feet, he sold the house and netted $300,000 for himself, which he then used to buy a Condo. After purchasing the new place, he opted for a Reverse mortgage and started earning an income of $682 per month, money that will keep coming in for the rest of his life. With the reverse home mortgage, this 76-year-old man totally turned around his situation and now lives with many new friends in a community of retired people.
A self-employed lady, who is 83 years young, was still working full time at the profession she loved. Her husband, 80, was also working full time. They owned many homes; none of them had a mortgage. For her “Education is very significant, she wanted to set up scholarship funds for all her grand children and great grand children.” What a wonderful idea to give part of your legacy away early and see it enjoyed by others.There are abundant examples of situations where people have leveraged reverse mortgages to buy retirement homes, cover medical expenses, financially aid relatives, and pay taxes.
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