How to enhance retirement funds with a reverse mortgage

I received a call from a lady who owns her home that is paid off with a market value of $1 million.

She is a widow and is struggling to keep up with expenses. Her small pension and Social Security were not enough to cover her monthly bills. We talked further about how a reverse mortgage could help her situation.

When comparing a home equity line of credit, a cash-out refinance and a reverse mortgage, only the reverse mortgage option requires no monthly payment.

At closing, she could get funds to make renovations to her home, pay off any debts and be able to have a nest egg for any unexpected expenses.

Another 12 months after closing, she has the ability to get another lump sum, have monthly disbursements, let the line of credit grow over time or opt for any combination of these.

She decided to proceed with the reverse mortgage to be able to enhance her retirement life.