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The RMF Experience

Common Uses

Ways you can use a reverse mortgage

Older homeowners often find they can live more comfortably with a reverse mortgage loan. With the reverse mortgage’s flexible repayment feature, you can use the funds however you choose and gain more freedom in managing your monthly expenses:

Gain flexibility

  • Improve monthly cash flow
  • Have a standby line of credit whenever you need it

Reduce your bills

  • Eliminate mandatory monthly mortgage payments
  • Consolidate auto loans and high-interest credit card debt

Fund major expenses

  • Buy a new car or home that better suits you
  • Pay for home health care

As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and maintenance.

Already have a reverse mortgage?

Keep in mind that you can also refinance an existing reverse mortgage. With interest rates at near-record lows, this is an important consideration. Refinancing a reverse mortgage is similar to refinancing a conventional mortgage — you’re looking for a financial benefit, which might include more favorable terms or a monthly payout that better fits your needs.


Which works best for you? Loan proceeds can be taken as:


A lump sum


Fixed monthly advances


A line of credit

Group 67

Or a combination of these

Best of all, you can change how you receive your remaining funds at any time to suit your lifestyle needs.

With a HECM loan, commonly known as a reverse mortgage, no principal and interest payments are required until you move, pass away or sell the home, as long as you meet your loan obligations. (As with any home-secured loan, you must keep current with property-related taxes, insurance and maintenance for the loan to remain in good standing.) However, you can opt to pay down your principal and interest if and when you choose; no pre-payment penalties apply.