Financial honesty is critical in a healthy marriage. Even more so when you marry after retirement because you’ve had more time to accumulate assets and rack up liabilities.
And if your intended has a reverse mortgage loan on the house that the two of you plan to call home, that’s a vital fact you need to know. Otherwise, you could wake up one morning to discover you don’t own the roof over your head.
In a reverse mortgage loan, a lender makes payments to older borrowers from their home equity. How much equity can be accessed is determined by the borrower’s age. The loan doesn’t have to be repaid until the homeowner dies or moves out of the house. And new borrowers (like adult children or subsequent spouses), can’t be added to the loan later.
So, if you weren’t married to the borrower when that reverse mortgage closed, your options are limited.
Curious about the potential snags if you “marry into” a reverse mortgage loan? Here are five.