Reverse Mortgages
A reverse mortgage can be very appealing to anyone over age 62 who has significant equity in their home. A reverse mortgage is not like your typical mortgage used to borrow money in order to purchase a home. A reverse mortgage does not have to be paid each month. In fact, a reverse mortgage may be paid by your estate after you die. The money you receive from a reverse mortgage can be put toward anything from vacations to groceries to medical bills.
Requirements for a Reverse Mortgage
In addition to the age requirement of being over age 62, a person must own his home outright or be able to finish paying off his home mortgage with the reverse mortgage in order to qualify for a reverse mortgage. You must also actually live in your home and continue to maintain it so it does not fall into disrepair. The reverse mortgage company is essentially holding your home as collateral and they want to make sure it keeps its value.
Proceed with Caution
A reverse mortgage can offer quick cash to seniors who need it, but it doesn’t come free. Some reverse mortgages have steep interest rates which will eventually come out of your estate, or will end up being paid by your spouse if she outlives you and has to sell the house to move into another residence or nursing home.
Get Legal Help
Experienced Elder Law Attorney Elga Goodman can help you understand all your asset protection options and create a plan for financial well being now and into the future. Contact us today at 973-841-5111.
Posted in: Estate Planning, New York Estate Planning