A reverse mortgage can help bolster your financial situation, allowing you to withdraw the equity in your home over time, but for divorcing couples a reverse mortgage may be able to lessen the financial burdens on each individual while allowing them to pursue their separate lives.
A reverse mortgage loan allows individual parties to choose how they continue to withdraw the equity in a shared home; a lump sum, ongoing payments, or some combination of the two. This tactic can be critically important if one spouse prefers to remain in the home but cannot meet the monthly mortgage payments alone. In this instance, a reverse mortgage can be used to pay off the mortgage — any remaining proceeds going to the spouse no longer inhabiting the home.
Know that with any reverse mortgage, the loan becomes due when the borrower moves off of or away from the property, or dies. Otherwise, they must pay property taxes and homeowners insurance over the life of the loan.
Stonebridge Mortgage Group can help you with your Reverse Mortgage, Real Estate Loan, and many other mortgage solutions. We serve the greater Portland area and are located in Gresham, Oregon. Call us today at 503.661.5580
Important Information to Understand
- At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds.
- Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees.
- The loan balance grows over time and interest is charged on the outstanding balance.
- The borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home.
- Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment.