Currents
July 2019
By: Martin Zevin, P.A.
Reverse Mortgage: Is It For You?
In consultations with clients for Estate Planning,
this question is often asked: “What do you think of
reverse mortgages?” My answer is: “It depends on
the circumstances of each person.”
If you currently have a mortgage and can comfort-
ably afford to continue making the
monthly payment, which includes
taxes and insurance, it is gener-
ally not a good idea to consider
refinancing into a reverse mort-
gage. If you have adequate sav-
ings and other investments and
don’t need either the lump sum
amount or the credit line, stay
away from reverse mortgages.
Typically, reverse mortgages
have much higher interest rates,
closing costs, fees and premiums
than typical mortgages.
For
example, a $180,000 reverse
mortgage today might have a 6 to
8 percent interest rate and closing
costs, fees and premiums ranging
from $12,000 to $18,000, versus
a conventional mortgage at 4%
interest with closing costs of
$3,000 to $6,000.
Here is how reverse mort-
gages work. Lenders appraise
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