Here is the most important reverse mortgage information you need to know: the money you get from a reverse mortgage is actually money you already had, money that was in a sense sitting unused in your home in the form of home equity. If you think of it that way, it's easy to understand why you can use the money you get for almost anything. Here are some of the most popular uses for reverse mortgages:

• Pay off existing debts.

Anything from credit cards to home equity lines of credit to car loans.

Note: Consolidating debt may result in higher overall interest cost over the life of the loan. Consult your financial advisor on paying short term debt with your mortgage loan.

• Pay for Home Health Care

Stay at home and pay for the needed care you deserve.

• Paying off an existing mortgage.

With a reverse mortgage, you will pay off your first mortgage (if applicable) and completely eliminate the need to make required monthly mortgage payments, giving you more disposable income each month.

• Adding to your monthly income.

You can take the money from a reverse mortgage as a monthly payment to supplement your existing income, or you may choose a line of credit or a lump sum.

• Paying for home maintenance or repair.

Your home is probably your most valuable asset and you can use the reverse mortgage money to maintain, or possibly increase its value.

• Creating a cash reserve for emergencies.

Many people like the feeling of security they get from having a financial "cushion". Use your home to create that “Peace of Mind”

• Providing funds for long-term care insurance or other financial tools.

Freeing up cash with a reverse mortgage may help you afford components of a financial plan. We do suggest or encourage the purchase of an annuity with the proceeds from a reverse mortgage, but please always consult with a financial consultant before making any such purchase.

• Helping family members or loved ones financially.

Pay for tuition or establish an education fund for grandkids, help a child buy a new house or just use your reverse mortgage to give gifts to the people you care about. The choice is yours.

• Being able to afford special things you've always wanted to do,

Such as travel or hobbies. Don't let lack of money keep you from doing the things you've always dreamed of doing. A reverse mortgage makes them possible.

Disadvantages of a Reverse Mortgage

A reverse mortgage may not be for everyone, consider the following:

• Beware if You are Eligible for Low-Income Assistance.
  
  If you are currently or will be eligible to receive low-income assistance from the Federal or State government (like Medicaid), you will want to be careful that income from a reverse mortgage does not disqualify you from that assistance. (NOTE: Social Security and Medicare are not impacted by a Reverse Mortgage.) * Please check with Financial Consultant



• Reconsider if You Are Planning to Move in the Near Term.
  
  Since a reverse home mortgage loan is due if your home is no longer your primary residence and the up front closing costs are typically higher than other loans, it is not a good tool for those than plan to move soon to another residence.



• Evaluate if You are Willing to Reduce Your Heirs Inheritance.
  
  Many people dismiss a reverse mortgage as a retirement option because they want to be sure their home goes to their heirs. And it is true, a Reverse Mortgage decreases your home equity - affecting your estate. However, you can still leave your home to your heirs and they will have the option of keeping the home and refinancing or paying off the mortgage or selling the home if the home is worth more than the amount owed on it. There are numerous potential Estate and Retirement Planning benefits to a Reverse Mortgage. Check with your financial consultant.