If you’ve taken the time to learn more about reverse mortgages, you likely have some questions.
- This is a federally regulated program that is intended to improve your parents’ quality of life.
- It has been in effect since 1989; it’s been enhanced over the years with improvements that benefit borrowers.
- Many retirees rely solely on social security and government benefits to get by. Unfortunately, the cost of living continues to climb, as income remains fixed.
- These pressures are an unfortunate reason why seniors are so vulnerable to high interest rate credit-card debt. A reverse mortgage may be the perfect solution to getting back on track.
Reverse mortgages can help provide financial security for the elderly and their families
This is a difficult topic for families, as financial issues can put unnecessary strains on relationships. Parents never want to be a burden on their children, especially financially.
There are three ways to fund your parents’ retirement: they pay, you pay or the home pays. If they are struggling to remain financially independent, there is a high probability you will be impacted. Having them tap into home equity with the reverse mortgage program is an ideal alternative to bridging this gap yourself and gives them the independence they deserve.
A reverse mortgage can provide additional financial security for the surviving spouse
If one of your parents dies, there’s a possibility that the surviving spouse can no longer afford to remain in the home. This is particularly difficult for those couples who still have mortgage and consumer debt. It is very common for retirees to set up reverse mortgages to protect one another. This loan program ensures that the survivor will be able to continue living in the home for as long as that person desires. The only requirement is keeping up with property taxes and homeowners insurance.