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Reverse
Mortgage Home Equity Loan-Most Popular Uses of Proceeds
Okay so you've reached that milestone
where you don't want to work any more-where ever that is- 60, 62,
65, 67-where ever and you want to plan the rest of your life. You
have limited resources but you do have a home free and clear that
you will live in for the rest of your life. You qualify for a
reverse mortgage and decide to pursuit that idea. You have the
mandatory counseling session, close on the loan and get all that
money-NOW WHAT?
"How do I love thee-let me count the ways…." as the saying goes. So
does it go with how to spend the proceeds of a reverse mortgage home
equity loan. As many ways as there are you can probably find one
more.
There are no restrictions on how the
money can be used. It can be used any way you wish. You may select
to get monthly payments, a lump sum upfront, or a line of credit
that would allow you to draw on the account as you needed it or a
combination of the three. If you select a line of credit with a
"growing" credit line your available balance earns interest. A
withdrawal at the beginning of the plan could be offset by the
interest earned.
The
most common uses of the proceeds are:
HOME IMPROVEMENTS Build that enclosed patio you always
wanted, a pool in the backyard, yada, yada.
MEDICAL EXPENSES You will have medical expenses that come
your way. Plan now for them and be ready.
SUPPLEMENTAL INCOME For most people this is a practical use
that is really a life saver to supplement the other monthly income
you might have.
TRAVEL Go some places you've never been before Italy,
Germany, Hawaii, and really spoil yourself. Or go on that cruise you
never had?
But you can be creative and come up with your own way to spend the
money-start that business you've always dreamed about; help your
kids with their expenses; pay off all those bills; the list goes on
and I think you get the idea.
How about a combo plan-get some money up front and take that trip
you never could afford and the rest in monthly payments to
supplement your Social Security check so you can live comfortably.
Now doesn't that sound great?
Your quest for the BEST deal on a home loan starts with
knowledge and information-you can't have too much of either.
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