Check with you financial advisor about the specifics of reverse mortgages in your personal situation.
Free information about reverse mortgages is available from HUD and counseling is also available.
On the website www.hud.gov there is a reverse mortgage calculator and a Frequently Asked Questions section.
Reverse mortgages are not suitable for every family situation.
Make sure you have all the current facts. The rules governing reverse mortgages are complex and there could be a long-term impact on your Estate Plan. Know how those regulations could impact you; your spouse and your loved ones/heirs.
Rules governing reverse mortgages have changed since their inception; have been modified as recently as this year, and in all probability will continue to be 'fine-tuned'.
Currently, the only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage or HECM, and is only available through an FHA approved lender.
Another source of information is www.consumeraffairs.com and AARP.
Remember to read everything before signing anything. Compare the costs of a reverse mortgage to other alternatives, for example down-sizing to a smaller home or moving to a less expensive state.
If you are uncertain, have documents reviewed by your legal advisor.
Some Special Situations to consider:
You and your spouse both took out a reverse mortgage: when your spouse dies you will want to move
You currently owe more than your home is valued
You (or your spouse) are in poor health
Only your spouse took out the reverse mortgage
Your income will severely diminish upon the death of your spouse
You are in a same-sex relationship
Your spouse is much younger (or older) than you
Your NEW spouse has a reverse mortgage (taken out prior to your marriage) and now you both live in the property
You plan to leave the property to your heirs
You own a property that is high value
You plan to move to another state in the future
You may not wish to maintain your home in the future and are considering down-sizing
You want flexibility about where you live - for example, moving closer to other family members
Keep in mind that a reverse mortgage is a legally binding financial document. Make sure you fully understand every detail before signing.
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