Can I have a mortgage on my house and still get a reverse mortgage?

Only if your mortgage is small enough to be paid off by the reverse mortgage.

A man is 62, but his wife is 58. Can they still get a reverse mortgage?

Only the person aged 62 can – if his spouse is no longer a co-owner and her name is removed form the title to the house. But in that case, if the older person died, the loan would become due and the house might have to be sold – perhaps something that the spouse wouldn’t want.

A couple like that might be better off waiting four years before applying for a reverse mortgage.

In case there is a wide difference in ages, the older homeowner might buy a term insurance policy, with the spouse as the beneficiary. If the older homeowner dies first, the survivor can use the money from the insurance to pay off the loan, thus keeping the house. This is one of the rare instances in which older people might consider purchasing life insurance.

Okay, what’s wrong with reverse mortgages?

The closing costs are high, for one thing. Especially if you live in the house for a short time after getting such a mortgage.

What if the monthly income from my reverse mortgage isn’t enough?

You can change your payment to a larger monthly income. Or you can get a one-time lump sum, along with the monthly income. Contact the loan servicer to ask that the loan be “modified”. Maybe your monthly income will be reduced so you will get that lump sum. Modifications typically cost $20.

If you lender’s loan limits have increased, you can also refinance the loan to boost the funds you have available.

I wanted to leave the house to my kids. Will I be able to if I get a reverse mortgage?

If you live a very long time while collecting a monthly income and the house doesn’t appreciate much if at all, your heirs may receive very little. But in all likelihood there will be some profit.

What if I change my mind?

You have three business days from the day you sign the contract to change your mind. (Saturdays are included, but not Sundays or holidays.)

Are there things I might do that are better than getting a reverse mortgage?

Some other possibilities include:

Selling your house to your children in return for lifetime income
Refinancing your mortgage
Getting a home-equity loan
Getting a home-equity loan, and using it to purchase an income annuity
Selling your house and moving to a smaller, less expensive house or a less expensive community. Or renting
Reducing your standard of living
Continuing to work or – if you were retired – getting a new job

You could combine some of these alternatives with a reverse mortgage. You could, for example, sell your house, move to a less expensive house, then get a reverse mortgage on that new house. And you could lower your expenditures and continue working at the same time.

What if I marry someone who, like me, already ahs a house with a reverse mortgage?

You might want to pay off both of your loans and obtain a new reverse mortgage together on one of the houses.

If just one spouse pays off the loan and moves in with the other, the mortgage becomes due when the homeowner dies, even if the spouse is still living in the house.

What if a couple with a reverse mortgage gets divorced?

If one spouse moves out, the mortgage remains in force until the other spouse moves out permanently or dies.

What if I decided to spend a year in France. Will my reverse mortgage remain in effect?

If you are gone for over a year, the loan becomes due.

May I rent out my home?

You may, but unless it is your own main home, the loan will become due.