Scenario: Borrower has lived in his house for all of his 80 years. He grew up in this house and inherited it from his parents. It’s now difficult for him to get up and down the stairs. Plus, he needs help with cooking and housekeeping. He’s retired and his financial resources are dwindling. He cannot afford the upkeep nor the home health aid that comes to his home every day.
PROBLEM: His Financial Advisor proposed he sell the house and downsize. Or possibly move to an assisted living facility. Yet this borrower is adamant; he has no desire to leave. Come hell or high water, he intends to live out his life in this house. Living anywhere else, he claims, would sap his spirit and kill him.
Diagnosis: This borrower has minimal savings and only social security and a small pension for income. While this borrower will not leave, he cannot afford to stay either. However, he’s owned his home mortgage-free for decades.
Solution: Performed a complete financial analysis to confirm the borrower’s financial resources, budgetary requirements, lifestyle needs, and ran best-case and worst-case scenarios regarding his time horizon to keep his home. Consulted and coordinated with his Financial Advisor. Determined a Reverse Mortgage would allow him to convert his equity into an up-front cash payment in addition to a life-long, tax-free, monthly stipend which he could use for living expenses, to maintain his home, install a stair-lift, and pay for his home health aid.
Result: . This borrower can now live out the remainder of his life in his home, in relative comfort, free of the financial concerns that have kept him up at night.
BOTTOM LINE: A Reverse Mortgage is a wonderful tool and can be a life saver for some seniors. But they are NOT appropriate for everyone. In order to confirm whether a reverse mortgage is right for you, ensure a reverse mortgage is used correctly, is complementing your financial plan, helping you to preserve your wealth, and sustain your retirement, you MUST utilize competent and qualified financial professionals. Only entrust your time, money, and mortgage to a seasoned, professional, and Certified Mortgage Planning Specialist® with a proven track record.
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, The Daily News, Anton Press, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.
This material is not from HUD or FHA,
and has not been approved by HUD or a government agency.
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