Last Sunday’s Seattle Times featured an article by David Ranii: Seniors move forward on reverse mortgages. Reverse mortgages provide tax free income by accessing the equity in the Senior’s home. There are no credit or income qualifications, the youngest on title must be at least 62 years old. Seniors can either receive monthly equity payments, a lump sum of cash or set up an equity line to draw on without mortgage payments. Loan amounts are factored by how much equity is available in the property and the Seniors age.
Many do not save enough for retirement and a reverse mortgage could be a great resource to help a senior enjoy their golden years. In the Seattle Time’s story, 86 year old Trudy
took $2,000 in cash up front and established a line of credit that enabled her to withdraw an additional $3,000 last year — money she used to fix her roof, among other things.
Trudy’s son suggested the reverse mortgage which has allowed her to stay in her home. Trudy says
“The reverse mortgage is a big help”.
Bob, it’s true there costs involved with the Reverse Mortgage and seniors should consider all options. This is part of the reason why they must meet with a HUD approved counselor.
I have recently entered the field of reverse mortgages and, although you probably know this, perhaps a lot of your readers do not. Before entering into a reverse mortgage for a relatively small item like a 3,000 roof-there are local, state and so-on programs that can help low-income seniors at no cost. My mother got 15,000 years ago to fix up her house and as long as she stayed in the house the debt decreased 10% annually. Although, up front they can be costly, so have your audience always check alternatives of a less or no-cost nature first. Thank you, Bob Hopkins