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Are New Reverse Mortgage Rules Good for Spouses?

Posted in Refinancing, Reverse Mortgage | August 7, 2014

Reverse mortgage rules are changing ,but will they help or hinder non-borrowing spouses? The old rules for Home Equity Conversion Mortgages (HECMs), which are backed by the government and make up the vast majority of reverse mortgage, were clearly a problem. HECMs (pronounced “heck ‘ums”) are available to those age 62 and above. However, the amount that can be borrowed is determined in part by the age of the youngest borrower. If one spouse is considerably younger than the other, the amount available is much lower, and if the younger spouse is under 62, he or she is ineligible for the loan. This led many couples to remove the younger spouse from the home’s title and let the older spouse take out the reverse mortgage. Homeless Widows and Widowers However,

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