If you’re a newly retired baby boomer who’s been putting off some must needed home improvements like a new, more efficient water heater, a new roof, or even new interior finishes, you can tap into your home equity for a reverse mortgage loan. According to a recent report, years of accumulated home equity can be used a financial tool to not only improve your home, but your life.

The reverse mortgage is perhaps the easiest and most cost-effective way for baby boom generation homeowners over 62 to make use of their equity. With a reverse mortgage, the homeowner receives a loan, but is not required to pay it back on a monthly basis like a traditional home improvement loan. Instead, you pay it back either when you decide to sell your house, or when you die. To find out how much of a loan you qualify for, you can utilize this reverse mortgage calculator: https://reversemortgagereviews.org/reverse-mortgage-calculator.

While most reverse mortgages can be used for paying past due bills, medical expenses and, in some cases, assisted living payments, one of the most cost-effective uses of the proceeds is to improve the family home you’ve been paying on for decades. These home improvements range from small to major projects.

Small Repairs

Says Stylemotivation.com, a certain amount of your reverse mortgage should be set aside for small and/or minor repairs. During the reverse mortgage application process, an appraiser will be sent to your house to inspect it. The appraiser is trained to take note of things like chipped paint, cracked windows, and potentially dangerous loose stair treads and bannisters.

That said, 15 percent of your mortgage proceeds will need to be set aside for the minor repairs. You’ll also be required to complete them within a six month window. Keep in mind, the reverse mortgage proceeds cannot be used for Do It Yourself (DIY) projects. But it remains a smart and fiscally responsible way for bringing your home up to present day code, while further solidifying your equity base.

Modernizing Your Home

Maybe your home was a modern marvel when you purchased it decades ago, but now it likely needs to be modernized for the 2020s and beyond. Your heating, ventilating, and air conditioning (HVAC) will need to be updated if not replaced in its entirety. So too will appliances like dishwashers and clothes washers.

Outdated appliances and HVAC systems can now be updated with newer, far more energy efficient, “green” conscious models. HVAC thermostats will be connected to smart, digital devices engineered to save on energy and energy costs, which means your reverse mortgage proceeds can save you money over both the short and long haul.

Accessibility for the Aging

Since you’ll likely be staying in your home until you die, you must plan for growing old in it. A reverse mortgage can help pay for the home modifications you’ll require when you become more physically limited in movement.

For instance, if you sense you won’t be able to make the stairs in years to come, you will want to install a stair lift. Perhaps a wheelchair ramp or two are also in order. Reverse mortgage proceeds can be utilized to make your entire home handicap accessible if need be. It can also be used to pay for the construction of an attached apartment to used by a caretaker who will assist you in remaining independent and comfortable in your own family home.

Bathroom and Kitchen Improvements

Since both the bathroom and kitchen is such an integral part of the family home, you will be using a good chunk of your reverse mortgage proceeds to pay for their upgrades. You must contact a reputable, licensed and insured (bonded) contractor who can not only handle all your bathroom and kitchen improvements, but do so in a timely manner and within or even under your agreed upon budget.

These improvements will not only add value and equity to your home, but they will make your life that much more enjoyable. But be wary of contractors who suggested extra improvements (“extras”) which can become costly. It’s best to stick to your original home improvement plan and your budget.

Equity Building Renovations

If your overall plan is to purchase a new house, you can use your reverse mortgage to build more equity in your existing home. You can take advantage of the mortgage proceeds for the construction of attractive improvements that will increase the home’s value. For instance, you can install everything from a new deck, to a new hot-tub, to new, more energy efficient picture windows. You can also digitize your home with the latest in Wi-Fi and artificial intelligence high tech, such as Alexa. This can be very attractive to young home buyers.

But don’t stop with the interior. Improving your home’s curb appeal by tapping into reverse mortgage proceeds is also important. New siding, creative landscaping, plus repaired driveways and concrete sidewalks will increase the value of your home dramatically.

If all goes according to plan, when you go to sell your home, you can payback the reverse mortgage in its entirety, and keep the extra proceeds for yourself.