Reverse morgtage
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Reverse morgtage
My neighbor struggles on her income, she owes nothing on her home. Is a
reverse morgtage a good idea. Thank you for your help.
Asked on February 2, 2018 under Real Estate Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
This is an economic and estate planning question, not a legal one: reverse mortgages are legal, valid, and enforceable, so it comes down to this person's situation and whether it makes sense for *her*. While this person should consult with a financial planner or adviser about her specific situation, they can be a good idea if you have enough equity in the home that you will likely pass away (based on equity vs. spending vs. life expectancy) before the reverse mortgage comes due, so you can make good use of the money without worrying about the consequences, and if you don't have family you hope to leave the home to. Conversely, it's often a bad idea if you are likely to outlive the money from it or want to leave the home to descendents or a significant other or other beneficiary.
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