The Scenario:
A borrower and her husband have lived in their home for decades, and their mortgage is nearly paid off. Sadly, her husband has been battling early-stage dementia, and his condition is worsening. She is now facing the reality that he will soon require care in a residential senior facility.
The Problem:
The borrower has some savings and investments. Under normal circumstances, these funds would have supported more than a decade of retirement. However, the cost of her husband’s impending medical care would deplete those assets in less than a year—leaving her financially destitute.
The Diagnosis:
While her liquid and retirement assets are limited, she has substantial equity in her home. Other than Social Security, she has no additional income. She cannot qualify for a traditional mortgage, nor can she sell her home—where would she go? She needs to remain close to her husband!
The Solution:
I conducted a comprehensive financial analysis to understand her resources, budget, lifestyle needs, and future plans for her home. I collaborated with her financial advisor and estate-planning attorney. Together, we determined that a Reverse Mortgage would allow her to convert her home equity into a tax-free monthly stipend. This income would cover her living expenses and fund her husband’s care facility. Best of all, these payments would continue for the rest of her life—ensuring her husband receives the care he needs, she remains in her home, and her financial security is preserved.
The Result:
Enormous emotional relief and a heavy financial burden lifted from her shoulders.
Bottom Line:
A Reverse Mortgage can be a powerful tool—and even a lifesaver—for some seniors. But it’s not right for everyone. To determine whether a Reverse Mortgage is appropriate for you, and to ensure it complements your financial plan and sustains your retirement, you must work with qualified professionals. Only entrust your time, money, and mortgage to a seasoned, Certified Mortgage Planning Specialist® with a proven track record.
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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.
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