AboutYan Ross Expertise Reverse Mortgages are a financial tool available to homeowners of the age of 62 or older. They are not for everyone. Mr. Ross provides responses to questions regarding eligibility, terms, consumer protections, financial requirements, and all other aspects of HUD-sponsored and other private program Reverse Mortgages.
Experience In addition to my legal and general business experience, I have trained with John Bennett, of Home Lending Specialists, the leading and most experienced originator of reverse mortgages in the country. I have mastered both academic and practical aspects of the reverse mortgage business, with special emphasis on consumer protections.
Education/Credentials Author, Certified Home Equity Conversion Mortgage Specialist (CHECMS) course, Institute of Consumer Financial Education (ICFE)
Bachelor of Arts, Princeton University --
Juris Doctor, Yale Law School --
Accredited Educator in numerous professional disciplines
Question If my reverse mortgage has a credit line and I still have $100k credit still available and I need to go into assisted living, should I go ahead and draw that $100k out before I am forced to sell my home in the coming 12 month period?
Answer Hello, Ross.
You pose an interesting question, but one that requires additional information for me to respond in a meaningful way.
Here are some of the facts and issues you will need to address:
What is the current value of your home?
How much do you have outstanding on the reverse mortgage?
How much equity do you have left?
How soon do you plan to go into assisted living? What will that cost?
Would there be equity left in the home after drawing out the last $100,000 available on the reverse mortgage credit line?
What are your other financial resources?
What consideration do you plan to make for your heirs -- do they have any interest in owning the home in the future?
If drawing down the rest of the available $100,000 would exhaust the equity in your home, and you just plan to walk away from the house when you leave for assisted living, it might make sense to do so -- from a purely financial standpoint.
I would suggest that you consult with a financial professional with experience in the seniors/elders area before making such an important decision.
If you wish, you can come back to me with additional information, but ultimately your decision should be made with direct professional input.