The Good and Bad of Reverse Mortgages
Lisa
Nachmias Davis
Attorney at Law
205 Church Street - Third Floor
New Haven, CT 06510
203-776-4400
Fax:
davis@sharinglaw.net
1. Do You Need To? Alternatives:
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Connecticut Home Care Program for Elders (no interest on state lien)
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Home Equity Loan for $100,000 or less (interest-only payments)
2. When Not to Do a Reverse Mortgage:
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When the money really won't be enough for your needs
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When you don't plan to stay
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When one spouse would move if the other passed away
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When someone else lives there and is under 62
For example: disabled child -- or younger spouse not
included as a borrower
-
When you have significant other debt -- including state lien
3. Special Times to Consider a Reverse Mortgage:
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When you want to stay home no matter what
-
When it's doubtful state aid will suffice for
your needs
- When you want to
keep your cash but still want to give something to the kids -- new 5-year
Look-Back Period
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To cover expenses if you've made a gift and might need care
-
To get the mortgage locked in BEFORE applying for state aid
4. If You Do a Reverse Mortgage:
-
Check your will: did you leave
the house to someone specially?
-
SEGREGATE any funds you withdraw -- proceeds are not assets under Title
XIX
-
Use an experienced reverse mortgage professional who asks you about all the questions in this handout
5. Where To Find Out More:
- AARP website - www.aarp.org/revmort
-
www.reverse.org
-
Consumers
- CHFA (for CHFA mortgages)