My husband is considering it. Is it a good idea or not?
Terry Says: I’m a big fan of reverse mortgages — done at the right time, for the right reason. Here’s a link to an article on reverse mortgages that I wrote a couple of months ago. Basically, if you’re planning to stay in your home for many years, and if you’re at least 70 (though they are available at age 62, but you get less money), then you should explore them with a professional. Counseling is required. You’re getting tax-free money out of your home –and it is an unending flow, no matter how long you live, as long as you can otherwise afford to pay taxes, upkeep, insurance and are planning to still live in the house. As an example, my Dad took out a reverse mortgage more than 15 years ago. He is still living in his condo at age 94! (They come around to check to make sure he is really alive!) But they can’t force him to move — and he has borrowed out far more than the condo is now worth! I tell him to keep living and enjoying life — he is beating the actuarial tables, and costing the lender (which is insured by the Federal government) a lot of extra money!