A frank estate planning/general financial planning discussion with your two children revealed that, while you hope to spend the rest of your days in the home you and your late wife had purchased almost thirty five years ago, neither of the kids has any interest, after your passing, in either themselves living in the home or continuing to own it as a rental.
The discussion itself was triggered by the fact that you’ve been evaluating different home remodeling proposals, including the installation of a walk-in tub and a ground floor laundry room (to avoid the need to frequently go down to the basement). You didn’t want to make the place less appealing to younger occupants if the kids turned out to have plans to use it themselves someday.
Since your plan is to remain in the home for life, a reverse mortgage might turn out to be of great benefit. The very essence of a reverse mortgage is that there are no mandatory monthly payments. If interest payments are not made by the homeowner, the interest is “tacked on” to the loan and the balance continues to grow. There is no “danger” represented by this process, since, with a reverse mortgage, the house itself stands as sole collateral for the loan. Your own liability (and later, that of your estate) will always be limited to the actual value of the home at the time you cease to occupy it. The title to your home remains with you, and you will continue to be responsible for property upkeep, insurance, and property taxes. (Whatever money you receive out of your housing wealth is not considered income, and so those payments are not taxable, and there will be no effect on your Social Security or Medicare benefits you receive.
Someday, if and when you decide to – or are forced to because of illness or death – move out of the home, you or your estate will need to repay the loan, with your heirs keeping any money left over.
That “frank estate planning/general financial planning discussion” you had served to clarify your plan for the future? A reverse mortgage can help you execute that plan.
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).
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
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