Reverse mortgages allow you to cash out your home’s equity.
With this kind of mortgage, you will receive payments from the lender and not the other way around. This can happen only while you’re living in your home and if it’s your principal residence.
Here are three ways to make the most of your reverse mortgage:
1. Pay off debt
If you have enough home equity, a reverse mortgage can help you take care of outstanding debt.
This is particularly useful for large, high-interest balances you’re not able to pay off in the short term. By eliminating these debts, you may relieve some pressure from your financial obligations.
Furthermore, you can settle up any unpaid medical bills to avoid a direct impact on your credit.
2. Remodel your home
As you’re nearing retirement, you may want to make some adjustments to your home to better fit your new lifestyle.
So, whether you want to renovate some areas of your home or simply make some slight improvements, a reverse mortgage can afford you the opportunity to make it happen now.
3. Supplement income
With an additional monthly income, you can increase your retirement dollars.
Let’s say your fixed income cannot cover all your expenses. A reverse mortgage can provide you with sufficient funds to get your retirement income to a comfortable level without sacrificing your lifestyle.
To make this happen, smart retirees are leveraging their home’s equity with a reverse mortgage from AAG. With a 97% customer satisfaction rating, AAG puts it all within reach so you can retire better with a reverse mortgage.