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.

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Common misspellings: mortage and morgage