Survey: Reverses Fund Everyday Expenses

Paying everyday expenses is the No. 1 use of proceeds by seniors for their reverse mortgage loan, according to a survey by the Consumer Credit Counseling Service of Greater Atlanta. The agency said of the 213 homeowners with such loans who were surveyed, 15% said they used proceeds for home repairs and maintenance; 8% provided care for dependents or paid medical bills; 7% paid property tax and homeowner's insurance; and 3% took a vacation. In addition, 19% said their budget was too tight; 16% felt they needed more liquid assets on hand; and 6% said they were falling behind on monthly payments, the group reported. The average borrower was 74 years old, lived in the home for 18.5 years, and had a current home value of $221,997. While nearly 80% of those surveyed were retired, 5% were working full time, another 10.5% were working part time, and the rest were looking for jobs.