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#60 Using a Reverse Mortgage to Renovate


David Garrison
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]

2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894

After much back-and-forth discussion, with each other, friends, the doctors, you’ve decided that despite the severe problems you’ve been having in navigating around your three- story home, you are going to do everything possible to spend the rest of your lives right there. You’ve always kept your home well maintained, even periodically modernizing the décor, but hadn’t realized just how expensive it was going to be to make certain adaptations strongly recommended by your medical providers. First on the list will be converting a downstairs room to a bedroom, along with enlarging the downstairs bathroom and installing a walk-in, whirlpool tub. You’ve come to grips with the fact that an access ramp and even an indoor chair lift might be needed later on.

While you theoretically have sufficient investment assets to foot the bill for all of this,most of the money is in tax-deferred accounts and that large of a withdrawal, even spread over a two year period, would create a problem. As a next step, your plan is to meet with a banker to discuss taking out a home equity line of credit, which would spread the payments over a longer period of time.

Using the wealth you have accumulated in your home to adapt it to your future needs might offer the solution. With a reverse mortgage set up as a line of credit, you can withdraw funds, tax-free, on an as-needed basis to cover the various stages of adapting the home for your present and future needs. Each adaptive redesign can be financed at the time it is being done, and there will be no need to make repayments until the home is one day sold.

Your reverse mortgage line of credit can be a convenient way to finance each home adaptation at the time it is needed.

The Harry Connick song talks of “A Wink and a Smile”. Your reverse mortgage can finance a “lift and a swirl”!