Reverse Mortgage Loan Blog

Dear Bruce: We are house rich but cash poor. I am 76 and my husband is 74. We are both in good health. We moved from Michigan to Florida because our expenses were higher than we expected and have very little money now. Would we be good candidates for a reverse mortgage? We have in excess of $200,000 in our home. — G.R., Florida

Dear G.R.: A reverse mortgage for many people is a very viable way to extract cash from their home and still live in it. The mortgage company will send you an agreed-upon sum every month until that 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. At the time that both you have passed on, the home will be sold and the mortgage company will recover its advances plus interest. The older you are, the more viable a reverse mortgage becomes.

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