There are several important questions you need to ask yourself when considering a reverse mortgage.
The answers to these questions will help determine if a reverse mortgage is right for you, and how you should structure it. These questions also help prepare you for the time when you no longer need the reverse mortgage (you and your spouse pass away, you move out of the home, or you sell the home).
You should ask yourself the following questions:
- How do you intend to use your reverse mortgage loan proceeds?
- Do you fully understand your obligations as a borrower under a reverse mortgage?
- If you are married, will your spouse be a co-borrower on your loan?
- How will your reverse mortgage loan be repaid?
- Do you receive assistance under any government programs that
are based on your current income?
- How long do you, and your spouse, plan to remain in the home?
- Have you considered other strategies to supplement your retirement income?
The answers will help provide a great understanding of how a reverse mortgage works and if it’s right for you.
You can download the full Reverse Mortgage Self Evaluation and Checklist, or contact me to setup a complementary consultation to learn how best to structure the reverse mortgage as a solution for you.