Justin Perry's Mortgage Blog

I recently met with a family that was suggesting a reverse mortgage to their parents.  This is actually how most reverse mortgages start,  with the kids.  Both of the parents had part time jobs and were "semi-retired."  It wasn't that they didn't want to fully retire, it was that they financially couldn't fully retire.

They knew exactly how much their fixed income was going to be and they also knew what their bills and expenses would be and the numbers didn't work.  So they had two options:

A) Continue working part time jobs to help cover expenses.

B) Fully retire and have their children help them pay the bills.

We were able to offer them another option.

C) Take out a reverse mortgage that gives them enough money each month to cover their property taxes and insurance.  And also $35,000 up front to pay for the remodeling they have always dreamed of doing. 

The downside to the children is that when they do inherit the home it will have less equity in it, but they can sell it and get all the remaining proceeds.  The upside is that they can watch their parents live the retirement they have always looked forward to, without feeling the financial pressure of paying their bills.

Do you know someone or have a family member who is on a fixed income and has trouble paying their bills or would like to improve their quality of life? 

Maybe you know someone who is 62 years of age or older and is well off financially but wants to give a large gift to a family member so they can buy a home or improve their life.

If you or someone you know wants to learn more about reverse mortgages please e-mail or call me and I will set you up with a free consultation with a reverse mortgage expert.