Reverse mortgages can be a great option for seniors with specific economic circumstances while other seniors might do better with another solution. Everyone is different so it’s important to consider the key factors before delving in.
For example, what if you die and your spouse is not listed as a borrower, or has not yet reached the age of 62?
The good news is that under new laws, the surviving spouse is now able to stay in the home for the rest of their life if they choose – even if they are younger than 62. That’s because the loan amount is actually based on the age of the younger spouse even if they are not on the loan itself. This way, if the spouse on the loan passes away, the remaining spouse may stay in the home and enjoy the remaining income without fear of foreclosure.
If don’t plan on staying in your home for a long time, be sure to take a look at the loan origination costs. Those costs are paid upfront and can be costly. So if you think you may relocate, downsize or head to a nursing home in just a few years, you’ll want to consider whether these fees makes sense in the long run.
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