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#15 Reverse Mortgage Can Be Tailed to Second Marriage Situation


David Garrison
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]

2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894

Yours is a story of senior dating site success – after nine years of widowhood, at age 66, you’ve met the person with whom you plan to spend the remaining years of your life. A family-and-close- friends-only wedding is planned for later this summer. Your fiancé, who is 60 and still working full-time, has sold his condo and moved into your house. Within your first year together,the plan is to do some major remodeling in order to better accommodate a carpentry workshop for him, while also expanding your yoga space and art studio.

Fortunately, the two of you have been able to openly discuss financial and legal matters,and have executed a pre-nuptial agreement. Each of you has investments, with the greater portion of his tied up in retirement accounts. You are receiving social security income and drawing regularly from both your IRA and from your other investment accounts. The plan is for you to retain full ownership of the home, with the stipulation that, should you predecease him, your husband will be able to choose to continue living in the home until his death. (Your decision on this matter comes from the fact his Long Term Care policy covers at-home care in addition to facility care.) The two of you are planning to share the remodeling expenses.

A reverse mortgage can provide funding for several of the wonderful plans you describe setting up a government-backed HECM loan will allow you to use the equity built up in your home to fund your share of the remodeling expense, without compromising the accounts on which you rely for regular income.

Although you would be the only borrower (since your spouse is under age 62, he would not qualify as a borrower), the reverse mortgage would ensure his right to remain in the home for the rest of his life. . It is statistically probable, as you’ve realized, that your second husband will outlive you. Important to realize is that, after your death, your husband would not be allowed to draw on the reverse mortgage line of credit, but would continue to be responsible for keeping up the maintenance and taxes on the home.

Not only is yours a story of senior dating success, but your story show how housing wealth can be used to financially launch that second start!.