“I called to ask questions about accessing the equity in my home to help cover monthly expenses, but my son was against it. He doesn’t live with me or pay my bills, he just thought it was a bad idea. He spoke with my loan officer, who was able to meet all of his objections. I am so glad I didn’t stop when my son said he didn’t like it!”
Well-meaning children—unaware of recent safeguard changes the US Government has put in place for reverse mortgage borrowers—may prevent their parents from moving forward with a transaction that would truly benefit them.
Misinformation about reverse mortgages abounds. Get the facts.
Objection #1: “Mom, the bank will own your home!” Actually, Mom never gives up the title to her home.
Objection #2: “But Dad, there will be no inheritance for us kids!” Children do not realize that the property can be willed to the kids. With new safeguards (including lower lending limits and reduced mortgage insurance costs), the loan balance grows more slowly, allowing the heirs to decide to refinance or sell the home.
Seniors have worked all their lives to provide for their families. Rather than struggling financially in retirement, they can unlock the equity in their home, and provide a more secure life in their golden years.