Reverse Mortgage Age Restrictions
What if one spouse is under 62 years of age?
The bottom line is you do not qualify for a reverse mortgage. Both spouses must be at least 62 years of age. Of course this is assuming the mortgage is under both names which is called join tenancy between husbands and wives.
Reverse mortgages come due whether the homeowner dies or moves permanently. Reverse mortgage lenders will try to reverse the mortgage in an attempt to pay off the home. The remaining spouse that is still living in the home would then be put in the position to get the rest of the money to pay off the reverse mortgage. This is a nightmare to say the least.
One fact remains that just because there is a reverse mortgage does not mean the bank owns the home or whomever is the lender. Your home is only security for the loan. The only thing the bank or lender wants is the money.
Basically, the one that remains living in the home has two options. Either pay off the reverse mortgage or move.
When the spouse whose name is on the mortgage either goes to a nursing home or dies, it may be in the best interest of the remaining spouse to move. After all, the house may be too large for just one person not to mention the responsibilities that are now in the hands of only one spouse instead of two.
When it comes to the payoff either life insurance or long term care insurance may be the only options. Life insurance policies can give enough money to pay off the reverse mortgage. Matter of fact, life insurance can be put into a trust in order to avoid probate court. This way funds are available immediately to pay off the reverse mortgage. Long term care insurance needs to be in an amount that is enough to cover care, bills and the reverse mortgage. Something to keep in mind.
There are four items you need to remember:
- All insurance policies need to be in an amount that is enough to cover the purpose of the policy.
- Consult a financial planner or your insurance agent to ensure the best way to achieve your goals.
- Read over all the terms of the reverse mortgage to make sure you understand everything.
- Always remember that is the individual whose name is on the mortgage is away from the home at least 1 year that this constitutes a permanent move.
