Following a round of visiting friends who have sold their homes and moved into various luxury retirement communities, you’ve decided that lifestyle is not for you. After an extended period of mourning your wife’s passing, you have become very involved in community and cultural activities, making the decision to “stay put” in the home you’ve owned for many years. A do-it-yourself-er, you feel easily capable of overseeing the maintenance of the house and yard, valuing the very independence you feel some of those former neighbors have given up by moving.
Far from wealthy, you have nevertheless been able to support your needs through a combination of Social Security, pension income, and investments. Despite having maintained long term care insurance on each of you, in the course of your wife’s extended illness and later death, there were substantial costs; those have all now been paid in full, leaving you debt free.
Now, at age 72, having made the decision to “age in place”, you’ve been looking into taking out a reverse mortgage on the home, as a financial “back-up” plan going forward. You want your two sons to have the choice of owning the home, either renting it out or choosing to live there once you no longer can. You are reluctant to take additional money out of current cash flow, so your plan is to use a small portion of the reverse mortgage line of credit to purchase a life insurance policy payable equally to them, that they could use to convert the home to a rental or to remodel it for their own needs.
You understand that, as your heirs, your sons will have no responsibility for the deficit should the value of the home be less than the debt at the time of your death. Conversely, should they decide to sell the property, any excess profit would be theirs to keep.
As someone who prizes independence, you feel staying in your home is the right choice. And, while you are not in need of additional income for yourself right now, the reverse mortgage line of credit will allow you convenient access to funds for the if-and-when.
Having decided to “stay put” in the home you own, you’re thinking ahead for the benefit of owners-to-be.
https://mutualreverse.com/david-garrison
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).
Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. 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:www.nmlsconsumeraccess.org Equal Housing Lender