There are plenty of ways you can use the proceeds from a home equity conversion mortgage, or HECM. Typically, it’s a financial product mostly reserved for financial emergencies. Need to install a new roof, hire long-term care, or pay for medical bills? You can use a reverse mortgage to get the funds you need.
Not Just a Retirement Tool
Living on a set income can be a challenge for a lot of seniors, emotionally and physically. However, an HECM for purchase reverse mortgage isn’t just a way for you to boost your monthly income, says the Housing Wire. You can also use it to buy a new home.
Why a New Home?
Hitting your retirement years can mean you’re more susceptible to joint pains. Taking the stairs just isn’t that easy anymore. Downsizing to a smaller home, one that’s just enough for your needs, can take a lot of the stress away. Also, living in a large property, with a garden or backyard that takes a lot of effort to maintain, can take a toll on you or your finances, since you’ll need to pay someone to keep it in shape when you can’t. A smaller home, in comparison, is much easier to maintain and clean, so you don’t have to worry about overgrown weeds in the lawn or having to pay someone else to take care of it for you.
Research will help you a lot. Also, reach out to financial advisors or HECM specialists. Make sure you get help from reliable and trusted pros near you. Whether you’re concerned about leaving debt that your heirs will have to shoulder or having to pay for anything extra, asking experts in the field is the best way to make an informed decision. Find out if you should go for this solution or not. Do your research, assess your situation, and ask around.