“A reverse mortgage has brought me bountiful solutions to resolving financial issues.  Its benefits enabled me to achieve the means to better enjoy living in my own home.  The equity available was spent in several areas for home improvement.  Included were remodeling of my bathroom, new carpeting throughout my home, and installment of a sump pump to prevent basement floodings.  Herewith also personal challenges, as a pledge to my church fulfilled and travel to family weddings and reunion assured.

“With a reverse mortgage you begin to have independence anew and you begin to feel more secure.  Being free from monetary anxiety, you have better control over spending your equity.  Thus a respect for yourself increases.”

This is a letter I received from a borrower who had taken out her reverse mortgage over 5 years ago.  Through the years I have heard from other borrowers on how the reverse mortgage has made a difference in their lives.

Another borrower called a couple weeks ago to tell me that they are moving into a care center because of with his Alzheimer’s she can’t care for him and it’s not safe for him at home any longer.  As we talked she told me how thankful she was for the reverse mortgage and what a difference it and I have made in their life.  They did their initial reverse mortgage over 8 years ago and we refinanced it for them about 3 years ago.  For years the funds from the reverse mortgage allowed them to maintain their lifestyle and go to Florida and escape the Minnesota winters.  No longer able to make the trip to Florida they have used their funds for other needs including medical expenses and home care allowing them to stay at home as long as they could.

Reverse Mortgage Made Difference for MN Man

Dick really wanted to stay in his home of many years.  The reverse mortgage funds were used for home improvements and allowed him to participate in a mission trip.  Since his reverse mortgage was taken out in 2002 he has called and shared how the reverse mortgage has helped him live his life comfortably and to stay in his home as he desires.

The reverse mortgage has helped seniors retire and still have funds for their lifestyle.  Using the funds for home repairs has helped seniors keep up their home so they could remain in the neighborhood where they are familiar.  Other times the reverse has been considered a life saver to pay for home care and keep the senior at home where they are most comfortable.

I have specialized in reverse mortgages since 1999 and have helped hundreds of seniors stay in their home with security, independence, dignity, and control.  I hope to continue to receive the letters and calls from my borrowers on how the reverse mortgage and I have made a difference in their life.  It’s a good feeling knowing that seniors have a better life and more respect for themselves.

For more articles on how reverse mortgages have helped seniors, read:  “Finance Retirement with A Reverse Mortgage,” “Know A Senior Who Wants Security, Independence, Dignity, and Control?,” “Reverse Mortgages Help Celebrate Independence,” “Reverse Mortgages Answer Prayers.”  “Reverse Mortgages Finance Home Care” and  “Be Educated About Your Options of Care and Financing of Care” address the advantages of using a reverse mortgage for home health care.

© 2009 Beth Paterson http://bethsreversemortgageblog.wordpress.com 651-762-9648

Is a Reverse Mortgage Right For You?

If you are a senior who is age 62 or older and you are living in fear that some day, when you need help, you’ll have to sell your house to pay for it, there is a solution. You may still be able to stay in your home while paying for home care, home improvements or medical bills.

How? If your home is paid off or you have only a small mortgage left, you can get a reverse mortgage to tap the equity in your home without selling or moving. These mortgages are called reverse mortgages because the lender makes payments to you, the homeowner, not the other way around.

The money you will receive is tax-free and will not affect Social Security payments or Medicare benefits. You do not have to pay off the loan until you move out of the house or the home is sold. You will never owe more than the value of the home at the time of repayment, even if the loan balance is higher than the value of your property. No debt will be passed on to your heirs. Reverse mortgage funds are available to spend any way you choose.

Who Is Eligible?

To be eligible, you must be 62 years or older. (If you are a married couple the youngest partner must be age 62.) You must also either own the home outright or have a low mortgage balance that can be paid off with the proceeds from the reverse loan. You must also live in the home. Like all homeowners, you still are required to pay your real estate taxes and other conventional payments like utilities.

Cautions and Things To Remember

• Be sure to work with a reputable lender, consult with your financial advisor if you have one, and do your homework before you make any commitments or sign any documents.
• Investigate the costs involved in a reverse mortgage before making the decision. Closing costs and fees may amount to more than 5% of your home’s value.
• If you plan to live in your home for more than three years, a reverse mortgage can make good financial sense. However, if you know you won’t stay in your home that long, then the cost of the loan plus interest may make seeking a reverse mortgage an unwise choice.
• Using the equity in your home will reduce the amount of money you leave to your family as inheritance
• If you live alone and need to stay in a nursing facility for more than a year, your loan will come due.
• It takes 45 to 90 days to apply for and receive a reverse mortgage. It may be better to receive one when you do not urgently need the money for immediate home repairs or in-home care.

For More Information

The AARP offers information about reverse mortgages, including an online calculator you can use to find out how much money you may get from a reverse mortgage.

The National Reverse Mortgage Lenders Association (NRMLA) includes information for consumers interested in learning more about reverse mortgages