Hi, I'm Peter Losavio, certified elder law attorney and board certified estate planning attorney. Here are five things you should know about reverse mortgages.
- A reverse mortgage can provide some extra money to meet daily living expenses it might provide the money for in-home care so person can be cared for at home. It could delay any need for the person to move to assisted living or nursing home. However, it can have disastrous consequences if a person has to move to a nursing home.
- When the homeowner passes away, the house must usually be sold, because the entire loan must be paid back.
- Because they are no payments during the term of the loan, the amount of interest increase is substantially over time because compound interest on the amount borrowed increases over the term of the loan.
- Most reverse mortgages are federal housing Administration home equity conversion loans or HECMs. A HECM insured by the federal government and is available only through an FHA-approved lender.
- Not all reverse mortgages are HECMs. Be cautious of non HECMs reverse mortgages, because they are not federally insured or regulated.
We can guide you through the complexity and help you decide whether or not a reverse is right for you.
For assistance with reverse mortgages, please contact us a 225 7694200.