For “Silver Divorces,” a Reverse Mortgage Could Be a Solution
You’ve been married to your spouse for several years, even decades. You’ve made the decision to end your marriage, but you’re worried about what is going to happen to the house because you still have a mortgage. Who is going to live where? And what can you both afford?
Even if both of you agree that one spouse stays in the house while the other moves, there are still financial considerations to make. How will the spouse who is leaving pay for their new condo or home? A reverse mortgage can be the answer for older couples going through a “silver divorce.”
When there is still a mortgage left on the home but there is more equity built than what is currently owed, a reverse mortgage can help. A lender may not be able to let one of the person’s out of the loan because it’s not in the lender’s best interest. When two spouses remain on the original mortgage, it can be difficult, if not impossible, for the spouse who wants to move out to buy another property.
What happens when the spouse who is going to stay can’t afford to refinance on their own?
If you are age 62 or over, a reverse mortgage can be used by both spouses. A reverse mortgage comes with many conditions that must be met, and is not the right solution for every party. Reading about and understanding exactly what a reverse mortgage is, what it requires and how it can be beneficial is important. You can read more about reverse mortgages online.