Q: I am 83 years old, and my only asset is my condo. I am trying to plan my estate to benefit my cousin, who lives in a different state. She suggested I get a reverse mortgage so she will not have to sell my condo. After doing research and getting a quote, I am flummoxed and don’t trust the whole concept. I would appreciate your advice. — Bernice
A: There are many tools you can use to plan your estate to make things easier for those you leave behind.
As the name suggests, reverse mortgages work like a regular mortgage loan, but in reverse. With a traditional mortgage, the borrower receives the entire loan amount and spends a fixed amount of time, typically 30 years, repaying their lender. With a reverse mortgage loan, the lender lends a lower loan amount based on the borrower’s age and the home’s value and then uses the home’s remaining equity to make the monthly payments.
