If you are carrying debt currently, a reverse mortgage may be a tax-advantaged financially superior way to consolidate and wipe out debt. Reverse mortgages are exactly like a regular mortgage in terms of equity – you can use the funds for whatever you like, but unlike a regular mortgage there are zero monthly payments. The interest simply accrues until the loan is paid off, which becomes due when you sell the house, or move (i.e. into assisted living etc.) or pass away.
It can also be a great way to help grandchilden with college, and a more enjoyable way to financially help adult children while you’re around to enjoy the process.
Your heirs or charity will still receive your home if that’s your intent. It will simply have a low, easy-to-pay off mortgage that’s due upon sale, or must be refinanced into a new conventional mortgage (or home equity line) if your heirs intend to keep the home.
We’d like to help you! Why not request a quote, and we’ll give you some risk-free options to consider? Just fill out the form on the right and we’ll get right back to you. There’s no pressure – just a friendly chat and options to think about.
Note: We’re lending professionals, not tax experts. For full details about your exact situation, please seek the advice of a licensed tax professional.