REVERSE MORTGAGE?

A reverse mortgage enables older homeowners (62+) to convert part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. The reverse mortgage is aptly named because the payment stream is “reversed.” Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes payments to you.  There are no restrictions on what you can use a reverse mortgage for (after all, it’s your money): travel, gifts, medical care, donations to your favorite charity, property taxes, long term care insurance, paying off existing debts, creating a nest egg, you name it.  There are no income, health, or credit score checks needed to apply for a reverse mortgage and, most importantly, no payments are required for as long as one of the borrowers uses the home as a primary residence.  Repayment is due only when the last borrower (in the case of a couple) no longer lives in the home.

Rather than copy and then paraphrase a sometimes overwhelming amount of basic information on reverse mortgages, here are links to a few of the more substantive web sites out there.  A personal favorite is www.reversemortgage.org.  If you are in the research stage, I strongly suggest that you bookmark my page and click over to that web site and read the section entitled “About Reverse Mortgages”.  There, you can also request free booklets to be mailed to you, or you can download them from your computer.  I found that site very helpful when researching with my parents, along with http://www.aarp.org/money/revmort/ and http://www.fha.gov/reverse/index.cfm.  This should give you a good overview, but I am always available by phone, email or appointment to answer more specific questions or mail you information that is tailored to you.  Please use caution when using the reverse mortgage calculators on these sites; occasionally they are not up-to-date or don’t include all costs.  It is preferable that you call me or email me and ask me to run the numbers for you so that you can have the most accurate reference numbers possible.  I am also fairly well-versed in reverse mortgage alternatives, and have no difficulty suggesting an alternative if it seems a better fit.