A reverse mortgage can be used to pay off the mortgage and she would still have $475K in home equity. ($850k-$375K)madbrain wrote: ↑Thu Mar 28, 2024 12:08 am Even if it was, assuming the 401k is depleted after paying off the CC debt, she is left with no savings, and nearly $6k of monthly expenses - twice as much as her SS. That is clearly unsustainable even for one month, let alone long term.
She should have taken a reverse mortgage or reverse HELOC at 62 , and would not be in this position if she had. But it's probably too late for that now. I don't think you can do a reverse mortgage if you still have a forward mortgage.
If the balance on the reverse mortgage is $400K at 7% that would cost $28K a year.