Question:

Can I take a reverse mortgage to buy life insurance?

Answer:

In fact, many seniors take a reverse mortgage with the purpose of buying a life insurance with it. During the last years, reverse mortgage loans have tripled. This is the easiest loan to obtain, and has possibly the highest level of return for an investment.

Basically, any senior who is over 62, owns a home and is not currently in bankruptcy is eligible to take a reverse mortgage. No credit score is required; also, no income or assets are considered.

Except buying life insurance, what else do I take a reverse mortgage for?

Life insurance is a common reason for taking a reverse mortgage. There are others, though. Even if people fear they could lose their home they have so many memories attached and leave nothing to their heirs, the bare truth is the home gets sold anyway in most cases upon death of the senior who owns it. Therefore, many people choose to get a reverse mortgage with the purpose of:

  • Paying medical bills;
  • Long-term stay at a nursing facility;
  • In-house help;
  • Education;
  • Vacation;
  • Purchasing life insurance;
  • Investing the cash, etc.

What does the reverse mortgage amount depend on?

Basically, your age, the reverse program you chose, your equity in your home and its current value and reverse mortgage rates determine the amount one can get.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: