If you’re married and have been looking into a reverse mortgage, it’s not unlikely the question keeps arising: ‘What about my spouse?’ This is a perfect starting point for understanding the long term effects of taking out a reverse mortgage as a couple.
Here are a few points to understand:
• As long as both spouses are age 62 or older, they can both be on the loan. If only one spouse is over the required age, a loan can still be obtained and there are some protections in place for the ineligible spouse.
• The reverse mortgage amount is calculated from the age of the youngest borrower. The older the age, the more money is available.
• If both are on the loan, if one spouse needs to leave the home permanently, such as to move into a health care facility, but the other stays in the home, the reverse mortgage will continue as originated.
• If both are on the loan, and one spouse passes away, while it is true the remaining spouse will continue on with the reverse mortgage unscathed, things will change if they remarry. While remarrying will not affect the original borrower, it can affect the new spouse if the borrower were to pass away or leave the home permanently. Reverse mortgage does not include the second spouse automatically. Refinancing or adding the new spouse would have to be considered.
If you are married and considering a reverse mortgage choose a reputable reverse mortgage lender to work with. They can lay out all your options and help you see the long term picture of what will happen in all the different possible scenarios. It is also especially important to make sure everyone feels comfortable and no one is being pressured into a scenario that could potentially end badly if the proper precautions are not put into place.
Sara Cornwall is a local Reverse Mortgage Advisor serving the entire state of Connecticut. Contact Sara and learn if reverse mortgage is right for you.