Reverse Mortgage Common Uses
Other than having to pay off any existing liens on your property (a prior mortgage, home equity loan, tax lien, etc.), there are virtually no restrictions on how a reverse mortgage may be used. Here are a few of the more common uses we’ve encountered. To review a specific use, simply click on the links below, or scroll down the page to see all of the common reverse mortgage uses.
 Eliminate Debt Payments
For many homeowners, making monthly payments on a home equity loan, mortgage, car loan, or credit cards can be challenging. This is especially true when rising interest rates cause payments to go up - yet fixed retirement incomes remain the same. With a reverse mortgage, you will eliminate your mortgage and home equity loan payments. That’s because reverse mortgage proceeds must first be used to payoff any real estate secured loans, if they are present. Many then choose to payoff other debts as well with their reverse mortgage. A reverse mortgage can provide peace-of-mind, and an improved quality of life, by eliminating payments associated with:
• Mortgages
• Home equity loans
• Car loans
• Credit cards
• Other unsecured debts
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 Cash For Daily Living
Would you like to increase your retirement income? If you want additional income for day-to-day living expenses, or simply to enjoy a better lifestyle, a reverse mortgage may be the answer. With a reverse mortgage, you can use the equity in your home to supplement your income for virtually any need including:
• Utility bills
• Medical bills
• Prescription drugs
• Landscapers or snow removal services
• Home repairs
• Food
• Gasoline
• Family gifts
• Going out to dinner more often
• Taking regular vacations
• A “rainy day” emergency fund
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 Pay For Medical Expenses
Access to quality health care is challenging for many Americans, but this is especially so as the cost of prescription drugs, in-home care and physical rehabilitation continue to rise. With these increased costs, many have difficulty coping due to their limited financial resources. You may also find yourself having to choose between health care, heat, food or other necessities. The good news is that now you have a choice. A reverse mortgage can be your cure for high medical bills. A reverse mortgage can help pay for virtually any health care expense including:
• Annual Medicare or private insurance deductibles
• HMO co-payments for doctor visits
• Prescription drug costs
• In-home caregivers
• Physical rehabilitation
• Durable medical equipment not covered by Medicare
• Medical supplies
• Any other medical expense
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 Pay For Prescription Drug Costs
Many worry about the cost of prescription drugs, especially as rising costs take a bigger and bigger portion of their often fixed income. Rising prescription costs don’t need to be a problem however. A reverse mortgage may be able to help you afford prescription drugs and maintain your quality of life. With a reverse mortgage you may be able to obtain extra cash for:
• Brand name prescriptions
• Correct doses, so you’re not forced to take less than the prescribed amount
• Use of a local pharmacy, rather than a mail order program
• Any other medical expense
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Home Improvements
 Your home is more than just a roof over your head. It contains a lifetime of memories, is a symbol of your independence and adds immensely to your quality of life. If you’re interested in improving your home, a reverse mortgage may be able to help you obtain additional cash to:
• Add siding or a new roof
• Install energy efficient windows
• Put in a new driveway
• Add a deck, patio or landscaping
• Remodel a kitchen or bath
• Add a new addition
• Add a main floor laundry
• Complete any other home improvement you can think of
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Aging In Place
 Aging in place is more than just staying in your home. It’s about staying close to a lifetime of memories and retaining a symbol of your independence. But over time, aging in place can present unique challenges - and may require significant home improvements. A reverse mortgage may be able to help you obtain extra cash for:
• Curbless showers for improved accessibility
• Handrails and grab bars
• A main floor laundry room
• Improved lighting
• Elevated toilets
• Lower kitchen cabinets to improve access
• Smooth, stepless entryways
• Wider doorways and hallways
• An easy access kitchen workstation
• Stair / chairlifts
• Any other home improvement you can think of
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Dream Purchases
 Has a lack of money kept you from owning, or doing, the things you've always dreamed of? With a reverse mortgage you can start living your dreams. A reverse mortgage from M&T can provide income for practically anything including:
• A vintage car, boat or recreational vehicle
• Airplane or other dream item
• A vacation home, 2nd home condo or time-share
• Traveling the world
• Taking cruise vacations
• Making home improvements
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 Wealth Management
Many homeowners, particularly those with substantial wealth built-up in their homes, want to put their hard earned home equity to work. If you’re interested in making the most of your home equity, a reverse mortgage may be the answer. By using a reverse mortgage to leverage the equity in your home, you can potentially reduce your total estate value subject to taxation.* A reverse mortgage may be able to help you in:
• Estate planning
• Providing an early gift inheritance to assist with a grandchild’s education or other needs
• Supplementing income due to the loss of a spouse
• Enhancing your total financial plan
• Reducing the draws from your investment portfolio during market down-turn**
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* Consult your tax advisor.
** Always consult with an independent financial advisor before making investment decisions.
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