Ask Terry Questions Reverse Mortgage with Younger Spouse

Reverse Mortgage with Younger Spouse

By Terry Savage on June 19, 2017 | Housing / Real Estate

I'M 74 yrs. old,and was wondering if a reverse mort. is a good thing? My home is paid for and have no pmts. on it. My wife is 54 yrs.

Terry Says

Here's a link to my recent column about Reverse Mortgages.  You'll find all the details, and you'll also learn that Reverse Mortgages (HECMs), which stands for Home Equity Conversion Mortgages, must be preceded by independent counseling.  Let me stress that you should be planning to live in your home for at least five years, and probably longer, to make a RM work best for you.  Also, during counseling, understand the protections for your much younger spouse.   If she is not age 62, her name cannot be on the title in order to qualify for a RM.  That means at your death, she has far fewer protections than a spouse who is also named on the RM.   The details matter, so get the counseling.  But I'm thinking you might want to wait another 8 years until she is covered by the RM.

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