Reverse Mortgages and Affluent Homeowners

Reverse mortgages aren’t just for low-income seniors. They are also being used by more affluent homeowners to supplement their income.

Reverse Mortgage and Travel

One couple profiled by HeraldNet is using a reverse loan to help them travel to their time shares and participate in activities they enjoy. Some people frown on seniors using reverse mortgage proceeds for things other than necessary living expenses. But for individuals who are already financially secure, a reverse loan could provide a cushion to enjoy some of life’s luxuries.

“I know a lot of people are skeptical about reverse mortgages, but it worked for us,” Frank Williams, 77, told HeraldNet. “Our friends want to leave everything they have to their kids, and that’s OK. Our kids are doing fine, they own their own homes, and would rather see us enjoy the rest of our lives.”

Cashing out Home Equity

Reverse home mortgages allow you to take cash out of your home and use it for any purpose. Although many seniors rely on reverse loan funds to pay medical bills, wipe out debt, or make home repairs, there are some folks who see this money as a tool to upgrade their lifestyle.

An Important Decision

Remember, there is no right or wrong purpose for a reverse loan. What you do with this money is up to you. But the decision to get a reverse loan should not be taken lightly. You should never borrow large sums of money without knowing exactly why you need it and what it is to be used for. If you really don’t need the money right now, it’s probably a good idea to skip getting a loan.

A reverse mortgage counselor can discuss reverse mortgages pros and cons with you before you make a decision. You can also compare reverse mortgage quotes here.

This entry was posted on Monday, March 1st, 2010 at 4:46 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.