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#190: Using home equity to reconfigure living quarters for Mom and new spouse


You and your sister have been told by your 72-year-old mother that she has met the man with whom she intends to “finish out her days”. While you’re very happy for her, you want to be sure she protects her own finances and property. Each of you has college-bound teen children and obligations of your own that must be prioritized, so you are in no position to offer financial support.

Your father passed away more than twenty years ago, and Mom, a very active senior, has continued to occupy the large family home, long mortgage-free, in which you grew up. There are no plans for marriage, your mother has explained, but “Fred” will be moving in with her and sharing all ongoing household expenses.

Your mother has always wanted to travel, but has been reluctant to go alone. Now that she has found a companion, Mom is talking about taking out a modest mortgage on the house to fund her share of at least one big trip a year. While the two of you agree that realizing her dream while good health and vigor allow, you’re concerned about her incurring debt. Neither of you expects to occupy that home, but you don’t want Mom to put her ownership in jeopardy. 

There is another way for your mother to access her housing wealth. With a government-insured  HECM reverse mortgage, she can make withdrawals from an equity line of credit secured by the property. So long as Mom continues to occupy the home, covering the property taxes and upkeep costs (you mentioned that “Fred” will be sharing those expenses), there will be no required repayments. Any used portion of the equity will continue to grow at the same rate as the interest being charged on the loan.

Your Mom’s housing wealth can help her make that brand new start.

Readers, 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).

David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: | Equal Housing Lender