Reverse Mortgages can be very versatile in how they can help senior homeowners. Each and every homeowner has a unique situation and particular attention needs to be paid to what the homeowner is trying to accomplish and what their needs are. It is very useful when a homeowner has no mortgage or lien on the property and can utilize all their funds as needed. However, if there are mortgages or loans against the home, these may be able to be paid off, adding to cash flow by eliminating loan/mortgage payments. Homeowners are still responsible under a reverse mortgage to pay property taxes, property insurance, and any homeowners association dues.
A May 11th article in US News & World Report listed reverse mortgages as a good option for retirees to earn money without leaving their home and exposing themselves to COVID-19, stating:
“Homeowners who want to avoid dipping into retirement funds during an economic downturn may find that their house is a source of cash. However, with home equity lines of credit being suspended by some banks, retirees need to get creative.”
(Note: Reverse Mortgages are still available at Guild.)