What will my children or heirs think about a reverse mortgage?  Below are a few questions to consider while you evaluate your interest in a HECM loan.

Do they want to inherit the maximum equity from your home OR do they want you to enjoy the most income possible today?

Do they want you to live at the highest standard of living possible?

Do they want you to maintain your dignity and independence?

Do they want to supplement your income?

Will there be equity left for them too? It just depends… How long will you stay in this house, how long will you live? What is the home value vs loan balance? How important is it to leave this legacy?

If there are children, this conversation comes up often. Invite your children to learn what this loan is and is not and if they have questions ask them to contact your CRMP reverse mortgage professional. Too often information is miscommunicated, and everyone is confused based on another homeowner example that may not apply to you. If the child does not want you to do this loan, it begs the questions above. Many families have a similar scenario where the children have their own lives, their own homes, their own income, and only want Mom and Dad to do exactly what Mom and Dad want to do with the home they live in!

If adult children live in your home what then are the options?  For a host of reasons, adult children occupy the family home temporarily or permanently. This may continue if the parent elects to take out a reverse mortgage, until the last borrower dies, moves out, and no longer occupies the home. Other obligations of the loan  ( pay property taxes, homeowners’ insurance, and other property charges) must be met, or the loan could be due and payable.  At the point when the last borrower no longer occupies the home, the loan is due and payable, and the home is usually sold to repay the debt. If there is equity it belongs to the estate.

To learn more about reverse mortgages, contact your local certified Reverse Mortgage Professional  (CRMP) for guidance and expertise.