Today’s Smart Money Question:
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Here Are Just A Handful Of Things You’ll Learn:
Today on Smart Money Questions we’re tackling two important topics – reverse mortgages and how to help a widowed parent.
First up, reverse mortgages: Who should consider one? What kinds of options are available? What are the costs associated? And why do reverse mortgages have such a bad reputation?
Last year I interviewed a director of reverse mortgages, Harlan Accola, to talk about some of the common myths.
The one thing to realize about a reverse mortgage is you have to make sure it’s for your primary home. You also have to be at least 62 years old and have a good amount of equity in the home. It needs to be a home you’ll be in for an extended period of time, at least seven to 10 years.
The closing costs on a reverse mortgage are going to be considerably more than a traditional mortgage, in some cases three times more expensive.
It’s also important to know there are different types of reverse mortgages. There’s a traditional option and a line of credit option. They operate completely differently. You’re going to get access to the equity in your home in different ways.
Our preference is the reverse mortgage line of credit. It’s structured differently than a traditional home equity line of credit. You’ll find it has many benefits, but you need to be careful or those benefits can turn around and bite you.
On today’s podcast we also answer a question about how to help a widowed parent deal with their finances. We’ll explain why you need to file life insurance claims as soon as possible and how to talk to your parent about their living arrangements.
Listen to the full episode or click on the timestamps below to skip to a specific section.
2:56 – Are reverse mortgages a bad idea?
6:35 – Different types of reverse mortgages
9:08 – Can we get kicked out of our home?
13:03 – How to help a widowed parent
14:49 – Look at beneficiaries
16:01 – Do you see any life insurance?
17:46 – Look at parent’s living arrangement
18:36 – Matt talks about is father’s passing
20:04 – Are liabilities joint or just in one parent’s name?
“The one thing to realize about a reverse mortgage is you have to make sure it’s your primary home.”
-Matt Hausman
Additional Podcast Episodes:
Harlan Accola – Behind The Curtain of Reverse Mortgages
Top Places to Retire and How They Affect You Financially
Mortgage Expert Lindsey Johnson Discusses PMI and Future of Real Estate
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The host: Matt Hausman – Contact – Resources – Call: 610-719-3003
