Reverse Mortgage News

Could A Reverse Mortgage Save Your Parents’ Lifestyle?

May 15, 2008

By Josh Green, TriCities.com

A MORTGAGE IN REVERSE

Helen didn’t want to sell her house. She was having a tough time paying for prescriptions, medical bills and she would need a new car soon. If she sold her house, she’d have to make repairs anyway.

“I just didn’t want to move,” she said. “I probably could’ve gone into something smaller and cheaper.”

That’s when Helen remembered something she heard about in a real estate seminar years ago. She was going to research reverse mortgages. She eventually took one out.

“I’m not an extravagant person. It didn’t take much to keep me happy.” She was able to put in new windows and floors. She paid off her credit card debt, too.“That was the biggest relief to get rid of that because it was about 8,000 dollars.”

Allied Home Mortgage Branch Manager Russell Street said more seniors like Helen are becoming interested in reverse mortgage loans. “This loan has grown about 400% over the last several years,” Street said. “People are, obviously, living healthier, they’re living longer lives. They’re outliving their money.”

AARP.org describes a reverse mortgage as “a loan against your home that you do not have to pay back for as long as you live there.” “It’s not for everybody, but it’s a Godsend to a lot of folks,” Street said.

ASKING IF IT’S RIGHT FOR YOU

He says one of the biggest questions seniors must look at is what their future plans are for their home:

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