3 Common Uses for a Reverse Mortgage

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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.