Under the right circumstances a reverse mortgage can be a good financial tool to provide another source of income for folks over 62. Reverse mortgages are paid as a lump sum of cash, through regular payments, or a combination of both. How your parents receive the money and how they spend it is totally up to them. Reverse mortgages have become popular because the money received doesn’t have to be repaid until a homeowner dies or moves. Your parents may benefit from a reverse mortgage if they:
- Own their home free and clear or have a low mortgage balance
- Plan to live in the home for a long time
- Are on a fixed income and have few other assets
- Need extra cash to help pay for home care or other bills
Your parents have other options – for example, downsizing or moving out of their house. But if your parents want to stay in their house and have limited income, a reverse mortgage is one of the tools that can help them meet their goals. We offer a no cost, no obligation review to discuss your parents’ specific situation and whether a reverse mortgage may be a good fit for them.
Glenn Matecun is a partner with the law firm of Matecun, Thomas & Olson, PLC in Howell and is also a licensed loan originator (NMLS #1469918). He answers readers’ questions on matters affecting seniors and their families. Email questions to [email protected], or if your question is urgent, call (517) 548-7400. The information in this column is not intended as legal advice.