Just closed a reverse mortgage loan for a homeowner here in Corona for a healthy, vibrant and young looking widow who owned her home free and clear. She lives in a beautiful single story newer home in Trilogy, a gated 55+ resort community. Her beautiful home was designed for “aging in place”. My clients monthly expenses were digging into her savings to the tune of about $700 each month and she could see her nest egg shrinking away. It would be completely gone in under 5 years! The current low interest rates weren’t helping either. She was sceptical at first about getting a reverse mortgage having heard some of the common misconceptions, but was interested to see what I had to say about it.
Her son was very supportive of her decision to get a reverse mortgage and understands that when he inherits the home, he will have 6 months (possibly even a year) to payoff the reverse mortgage. He says he will just sell the home and keep the change. Since my client is only taking $750.00 per month it is very unlikely that she will ever be “underwater” on her reverse mortgage and should pass on some equity dollars as well as her savings to her son. In the meantime, he does not have to worry about his mother running out of money and can better plan for his own retirement.
I love my job!
By Deborah Nance
Your Local Southern California Reverse Mortgage Professional
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iReverse Home Loans, LLC, NMLS#810502 originates reverse mortgages in Alabama, Alaska, Arizona (MB-0919584), California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon (ML-5378), Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont (1164-MB), Virginia, Washington and Wisconsin.
Important Information: Reverse Mortgages are neither "endorsed" nor "approved" by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans. The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage loan to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, we strongly recommend that you consult with a qualified independent housing counselor, family members and other trusted advisers before making this decision. This website is not from HUD or FHA and was not approved by HUD or any government agency.