Currents July 2019 July | Página 13

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 We Support Our Troops continued on page 14 > 13