DO: Talk to a professional from a reliable company that is built on experience and specializes in the reverse mortgage industry. This will ensure that you are informed about all the options available. 

DON’T: Work with someone who is pressuring you, trying to sell you other products, or who tells you not to inform your family or advisor. If that happens, give Senior Equity Financial a call and we will be happy to give you an objective opinion. 

DO: Consider using your reverse mortgage advances to pay for long-term care expenses, including your premium for a long-term care policy. If your concern is to be sure you can stay in your home, even in the event of future health concerns, this can be a tremendous planning option. 

DON'T: Put the money from a reverse mortgage line of credit into your savings account or a CD in order to offset the interest. Interest only accrues on your reverse mortgage monies as you stick them in your pocket. A line of credit is not available on all reverse mortgage programs. Please contact us for further details. 

DO: Consider leaving unused proceeds from your reverse mortgage in a line of credit, which can serve as an additional tax-free savings account. When you need the money, all you have to do is request an advance. Only then will interest start accruing on the monies you withdraw. The monies you do not use will be growing in your line of credit for future use. 

DO: Consider using the tax-free proceeds of a reverse mortgage rather than withdrawals from your tax-deferred investments, such as an IRA or 401(k). We encourage you to talk with your tax or financial advisor to consider whether or not this is appropriate for you. 

If you’re interested in learning more about reverse mortgages, TSIT has the experience to help you understand the options and find the reverse mortgage that’s specifically tailored to fit your financial needs.