JoshGuestJuly 8, 2021 at 12:33 pm
I’m recently separated and my wife has moved out of our home. I’ll be 62 in a few months. We paid $990K for our house in 2018 with $600K down and a 30-year fixed mortgage, current balance around $375K. The current market value of our home is around $1.3M. I plan to retire in five years and would probably sell the house at that time, as my daughter will most likely be on her own by then and the house would be too big for me to live in alone. The purpose of the reverse mortgage would be to buy my wife out so I can remain here for the time being. My daughter starts college in the fall of 2022, locally, and will live at home at least at first. Would a reverse mortgage make sense for me? And am I correct that I’d need to borrow enough to pay off the existing mortgage?
AdministratorSeptember 25, 2021 at 7:36 am
Hi Josh, apologies for the slow response. I missed this post. Yes, a reverse mortgage could be a good solution because it will eliminate the mortgage payment over the next five years (though you’ll need to continue paying taxes and insurance on the house). You mentioned buying out your wife, so are you planning to split the remaining equity in the home? If so, you’ll probably want to work with a reverse mortgage lender who does “jumbo” reverse mortgages. Such jumbo reverse mortgages allow you to tap into more of that $1.3 million value than the traditional federally-insured HECM reverse mortgage – which is the most common reverse mortgage offered by lenders. Hope this helps! And feel free to check back with any additional questions.
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