Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
Getting a reverse mortgage can be a great way to create a regular source of income for yourself. Many individuals choose to pursue a reverse mortgage for a variety of different reasons. Here are some of the most common uses for a reverse mortgage.
1. Buying a Second Home
One of the most common reasons that people get a reverse mortgage is so that they can purchase a second home. This makes it an ideal solution for purchasing a second home, because you will not have to come up with any money to make the payments on the second mortgage. You will be receiving a regular monthly payment from the equity in your first home, and you can then use that money to pay your mortgage payment on the second home.
2. College Expenses
Many individuals also choose to get a reverse mortgage so that they can pay for college expenses for a child or grandchild. The funds from a reverse mortgage will not have to be paid back while you are alive. This means that it can be a great way to help a loved one get her education.
3. Life Insurance
You can also use the money from a reverse mortgage to pay for life insurance. This will allow you to leave a sizable inheritance to your children in the future.
- FHA Loans for a First-Time Home Buyer
- Appraisal Basics
- Should You Refinance? Make Sure the Timing is Right
- 3 Warning Signs of Loan Modification Scams
- FHA Eligibility with Bankruptcy and Foreclosure
- 3 Reasons Banks Reject Short Sales
- Second Mortgages: Advantages and Disadvantages
- What Lenders Don't Reveal About Home Equity Loans
- 3 Factors that Can Negatively Affect Your Mortgage Application