Ways to Use HECM
The New Reverse Mortgage is a versatile retirement funding tool that can be utilized in many ways. Here are just some of them:
– Pay off your forward mortgage to reduce your monthly expenses.
– Re-model your home to accommodate aging limitations.
– Maintain a line of credit (that grows) for health emergencies and surprises.
– Cover monthly expenses and hold on to other assets while their value continues to grow.
– Cover monthly expenses and avoid selling assets at depressed values.
– Pay for health insurance during early retirement years until Medicare eligible at 65.
– Pay your Medicare Part B and Part D costs.
– Combine life tenure payments with Social Security and income generated by assets to replace your salary and maintain your monthly routine of paying bills from new income.
– Pay for your children’s or grandchildren’s college or professional education.
– Maintain a “standby” cash reserve to get you through the ups and downs of investment markets and give you more flexibility
– Combine proceeds with sale of one home to buy a new home without a forward mortgage and monthly mortgage payments.
– Pay for long-term care needs
– Fill the gap in a retirement plan caused by lower than expected returns on your assets.
– Pay for short term in-home care or physical therapy following an accident or medical episode.
– Pay for a retirement plan, estate plan or a will.
– Convert a room or basement to a living facility for an aging parent, relative or caregiver.
– Set up transportation arrangements for when you are no longer comfortable driving.
– Create a set aside to pay real estate taxes and property insurance.
– Delay collecting Social Security benefit until it maxes out at age 70 1/2.
– Eliminate credit card debt and avoid building new credit debt.
– Cover monthly expenses in between jobs or during career transition without utilizing other saved assets.
– Cover expenses and avoid capital gains tax consequences of selling off other assets.
– Purchase health-related technology that enables you to live in home alone.
– Pay for an Uber or Lyft account so you have mobility and access to appointments and social activities.
– Help your adult children through family emergencies.