Yes, A Reverse Mortgage Can Improve The Quality of Life – Done Right

There are many commercials aired daily, highlighting reverse mortgages. Well-known actors that the current baby boomers grew up with invite the 62 and over home owner to consider a reverse mortgage, and let your home begin to pay them. There are many other uses for the reverse mortgage, and some of them are highlighted by the spokesperson. There is nothing incorrect with the information being provided; the lenders only have sixty seconds to get their message across, but the process is not as simple as just making a call an applying.
The process does start with providing some basic information, as required by law. The borrower’s needs must be assessed next. I invite the primary care-taker to the consultation. I ask how long they plan on being in the home, if they have a budget, if there are any short-term cash needs; Is Counseling Considered Medical Treatment I ask them to anticipate future needs such as repairs, taxes or home health care. Often the client is referred to me by a financial advisor or attorney, so they are always present. Once we have assessed the needs and I am sure the borrowers understand the process, we continue.
A mandatory counseling session with a HUD-approved counselor is the next step. Only then is an application taken, with the borrower having already chosen among the twelve loan options currently available. The entire process typically takes about thirty days, including an appraisal, title policy and minimal documentation from the borrower.
Most of the time clients do not have an immediate need for the tax-free proceeds from a reverse mortgage. They opt for a HECM line of credit, and those funds are available to them on demand. They use the proceeds to supplement their income, and preserve the assets that are generating income with the advisor. Often the borrower does use the proceeds to extinguish other debt (usually high-interest debt), and the improved cash flow allows the borrower to have money for necessities like medications or medical care.
So many seniors planned to use their home as their nest egg when the time comes. Now, faced with savings accounts that pay a negative real interest rate, and a stock market that has returned zero over the past decade, retirees are concerned about running out of money. Well, for many, the time for tapping that nest List Of Therapeutic Interventions Pdf egg has come, and working with a qualified reverse mortgage consultant can help unleash that equity efficiently, allowing the borrower to have a better quality of life. As one elder-law attorney I consult with said “When you run out of money, you run out of options”. I don’ want to see any senior run out options.