We all can't live forever, and the famous "until death do us part" stanza from our marriage vows suddenly becomes omnipresent when we realize that we're going it alone. This does leave the lingering question, though: How can a reverse mortgage benefit widows and widowers?
What Is A Reverse Mortgage?
As reverse mortgage is a way to tap into your home's equity and borrow it in a special kind of mortgage that requires no monthly payments (while you are alive) and that is not repaid until after you have passed away. It still has similar interest rates and fees that are attached. Qualifying persons must be at least 62 years of age and have substantial equity in their homes. Learn about four other things to know about a reverse mortgage to better educate yourself.
How It Can Help Widows, Widowers
Let's take a page from a classic example here to better illustrate this concept. Let's say Jim and Jane have been married for 30 years. They've been at their house for 20 years and have accrued substantial amounts of equity with about 10 years of repayment left.
Suddenly, Jim passes away, leaving Jane to cover all of their monthly expenses. Jane meets the age requirements and takes out a reverse mortgage home loan on her house to secure her retirement, now that her income has been affected. Jane is able to preserve her lifestyle and not have to stress over making ends meet. The loan is only repaid after Jane passes away, freeing up more monthly funds because no mortgage payment is due each month anymore.
You Do Have Options
A reverse mortgage is a viable solution for widows and widowers, as the above example reflects. It is always good advice to learn more about the benefits of a reverse mortgage and to conduct thorough research and due diligence to assure that this is the right choice for your needs.
If you do arrive at the conclusion that this is the best solution for you, there are ample lenders you can contact to receive more information and to see what interest rate that you qualify for. While someone passing away is always tragic, it is comforting to know that you do have options for preserving your lifestyle.