It has been a long term dream of yours, after retiring, to take all four grandkids on a cruise. During and even after the pandemic, you had not felt safe going ahead with your plans, but now you’re thinking that this January might be the right time. With two of the young ones from here and two from Virginia, you’ll plan to fly with the two from here to Virginia, then all fly to the departure point in Miami. While you once had money set aside for this kind of trip, it’s not going to be nearly enough given today’s prices. Reluctant to tap your retirement accounts, you’ve been considering re-mortgaging your home. You’ve been hearing a lot about reverse mortgages as well, but you don’t want to leave your children with a debt to pay years into the future.
HECMs (home equity conversion mortgages) were created specifically to allow for retirees like you to tap into the equity of their homes to realize goals and dreams. Neither you nor your heirs will be “saddled with debt” by an FHA-approved reverse mortgage. In the future, when you either choose to depart your home or upon the second of your deaths, the sole liability for the satisfaction of the debt is the home itself. Should the mortgage balance exceed the home value, the heirs may give it back to the lender with no deficiency owed. In the event that the home value is in excess of the debt, the heirs may purchase the home for 95% of the debt OR sell the home, pay off the debt and retain the balance of the proceeds for themselves.
A reverse mortgage is all about using your own assets to realize your own dreams and goals. A cruise with their grandparents is a great way to create precious memories for the young folks….
If you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here (and scroll down).