Updated: November 12, 2021 12:17 PM ET | Originally published: October 12, 2021
Advertising Disclosure
This article was made possible through advertising relationships with one or more of the advertisers listed on this page whose products and services we think our readers will find valuable. This article was written by our Ads team and doesn't necessarily reflect the views of Money's editorial team. Learn more about how we make money.
two older adults sitting on a house that is going underwater what is a reverse mortgage
Kiersten Essenpreis for Money

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.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Protect your retirement with a Reverse Mortgage.
With an additional income, you can cover health care expenses or even invest in things that will improve your quality of life. Find out more about Reverse Mortgages by clicking on your state.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
Protect My Retirement

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.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Is a Reverse Mortgage right for you?
With American Advisors Group, you can get the most out of your Reverse Mortgage loan. Click below and start planning your future today.
Get a Free Information Kit