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Reverse Mortgage Home Equity Loan-Most Popular Uses of Proceeds
Okay so you've reached that milestone where you don't want to work any more-where ever that is- 60, 62, 65, 67-where ever and you want to plan the rest of your life. You have limited resources but you do have a home free and clear that you will live in for the rest of your life. You qualify for a reverse mortgage and decide to pursuit that idea. You have the mandatory counseling session, close on the loan and get all that money-NOW WHAT? There are no restrictions on how the money can be used. It can be used any way you wish. You may select to get monthly payments, a lump sum upfront, or a line of credit that would allow you to draw on the account as you needed it or a combination of the three. If you select a line of credit with a "growing" credit line your available balance earns interest. A withdrawal at the beginning of the plan could be offset by the interest earned. The most common uses of the proceeds are: How about a combo plan-get some money up front and take that trip you never could afford and the rest in monthly payments to supplement your Social Security check so you can live comfortably. Now doesn't that sound great?
About the Author: Your quest for the BEST deal on a home loan starts with knowledge and information-you can't have too much of either.
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