Funding Bucket-List Travel with a Reverse Mortgage

Retirement isn’t just about slowing down — it’s about finally having the time to do the things you’ve always dreamed of. For many retirees, that dream means travel.

Maybe it’s a long-postponed trip to Europe, a cross-country RV adventure, or simply visiting family more often. Travel consistently ranks near the top of retirees’ bucket lists — but it also comes with a price tag.

A two-week trip overseas can easily run tens of thousands of dollars for a couple once you factor in airfare, hotels, meals, and tours. Even domestic adventures like cruises or extended road trips can strain a fixed budget.

That’s where a reverse mortgage can open the door to possibility.

How a Reverse Mortgage Can Make Travel Possible

If you’re 62 or older and own your home, a reverse mortgage lets you turn part of your home’s equity into spendable cash — without taking on monthly mortgage payments. You can choose to take a single lump sum for a big trip, set up monthly payments to fund ongoing adventures, or leave the funds as a line of credit and draw on them as needed.

This flexibility is what makes a reverse mortgage so appealing for retirees who want to travel. It allows you to preserve other savings and investments for the future, rather than cashing out accounts or selling investments at the wrong time.

Planning Your Trip Without Risking Your Retirement

The key to using home equity wisely is to plan ahead. Before booking that dream cruise or European tour, decide how much you want to spend — and how it fits with your overall retirement budget.

For a single, big-ticket trip, a lump sum payout might make sense. For retirees who want to travel regularly — say, taking one major trip a year — setting up a line of credit gives you flexibility. You can draw only what you need for each adventure, and any unused credit actually grows over time.

Keep the Big Picture in Mind

A reverse mortgage can free up cash, but it’s still a loan. Interest accrues on whatever you use, which means the total cost of that dream trip will eventually be higher than the original price tag. It also reduces the amount of equity that may be left to heirs when the loan comes due.

You’ll also still need to meet the ongoing obligations of the loan — including paying property taxes, homeowner’s insurance, and keeping your home in good condition — even while you’re away traveling. Setting aside funds to cover these costs can give you peace of mind while you’re on the road.

Make Your Travel Dollars Go Further

Unlocking equity is just the first step. Stretching it is just as important.

Consider traveling in the shoulder season to save on airfare and lodging, using senior travel discounts, or combining multiple destinations into a single trip to get the most value out of each adventure.

A Real-Life Example

Imagine your home is worth $500,000 and you qualify for $200,000 through a reverse mortgage.

You could take $30,000 as a lump sum to pay for a once-in-a-lifetime trip to Italy and still leave $170,000 in a line of credit for future needs.

That way, you cross the big adventure off your list without jeopardizing your long-term security.

Travel Without the Worry

Retirement should be about experiences, not financial stress. A reverse mortgage can unlock the resources you need to finally take the trips you’ve been dreaming about — whether it’s a single journey of a lifetime or the freedom to travel more often.

At South River Mortgage, we help retirees turn home equity into unforgettable retirement moments. If travel is on your list, let’s explore how much equity you could use to make it happen.

Click here to get your instant reverse mortgage quote.

FAQs

Can I really use a reverse mortgage to pay for vacations?

Yes. Reverse mortgage proceeds are yours to use however you wish — whether that means paying off debt, covering medical costs, or funding a dream trip. There are no restrictions that limit you to “essential” expenses.

Should I take a lump sum or a line of credit for travel?

If you’re paying for a single large trip — such as a $20,000 cruise or international vacation — a lump sum might be the simplest choice. But if you plan to travel frequently over several years, a line of credit could be smarter. Any unused funds in a reverse mortgage line of credit grow over time, giving you even more borrowing power in the future.

Will using a reverse mortgage for travel affect my children’s inheritance?

Yes, it may. Because a reverse mortgage is a loan, the balance grows with interest over time. This reduces the amount of equity left when the home is sold or passed on. However, thanks to federal non-recourse rules, your heirs will never owe more than the home’s value — even if the loan balance ends up higher than the property’s worth.

Does taking money out for travel affect my Social Security or Medicare benefits?

No. Reverse mortgage proceeds are treated as loan advances, not income, so they do not reduce Social Security payments or Medicare eligibility. If you receive Medicaid or other need-based benefits, talk to a financial advisor, since large lump sums in your bank account can affect asset limits.

Do I have to spend the money all at once?

No. You can leave unused funds in a line of credit and tap them whenever you’re ready for your next adventure. This approach can help you space out trips over several years without committing all of your home equity upfront.

Can I take multiple trips using a reverse mortgage?

Yes — especially if you set up a line of credit or monthly payments rather than taking the entire amount as a single lump sum. Many retirees take one major trip each year, drawing from the line of credit as needed.

What happens if I decide not to travel after setting up the reverse mortgage?

You’re not obligated to spend the funds on travel. If you take a lump sum, you can use it for anything you choose. If you set up a line of credit and don’t draw on it, it simply remains available — and continues to grow — until you decide you need it.