Are “reverse mortgages” a good idea? We have a client who has very little income, but a lot of equity in his house. If he took out a reverse mortgage, he would never have to “pay back” the money borrowed. However, he would still have to pay annual taxes, insurance, and maintain the home. If he wants his children to inherit the home, they will have to pay off the mortgage after he dies. Reverse mortgages are one form of financing, but not the only way to obtain loan funds. Please contact our office to discuss the plusses and minuses with this type of financing, and discuss the best solution for your personal needs.
Mitch