Reverse Mortgage Loan Blog

DEAR BRUCE: I am 74, and my husband is 76. We are in good health, and we have a lot of fun traveling. We are also house-rich but cash-poor. Moving from Massachusetts to Florida, we discovered some unexpected expenses. Is a reverse mortgage a way to go for us? We have in excess of $250,000 in our home. - B.C. in Florida

DEAR B.C.: A reverse mortgage for many people is a viable way to extract cash from their home and still live in it. Simply put, the mortgage company will send you an agreed-upon sum every month until yet another agreed-upon number is reached. Once you have exhausted that number, you will no longer receive a check. However, you may live there for the balance of your life and your husband’s. When both of you have passed on, the home will be sold and the mortgage company will recover its advances plus interest.

I often receive inquiries about reverse mortgages from people in their 50s. It’s unlikely a reverse mortgage would be issued to them, but even if it were, it would be a small monthly amount since that person’s life expectancy could be as much as 30 years. The older you are, the more viable a reverse mortgage becomes.

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