What Happened to Your Mom Solidified Our Decision to Get a Reverse Mortgage

As I am writing this, it is heartbreaking knowing my mom has a few days left on this earth as she has lost the battle with ovarian cancer at 70 years old. By the time you are reading with this she will no doubt be in heaven making it even better and brighter place.

My parent’s best friends, Duke and Kathleen (names changed for privacy) reached out to me about two years ago as they were curious about a reverse mortgage. They liked what they heard but weren’t quite sure if they were ready to move forward with the loan or not. Duke was retired but Kathleen was still working. They were both healthy, Kathleen loved her job and they were just fine financially.

Fast forward a year and half, six months into my mom’s battle with cancer, they said they were ready to move forward. What they told me was that Kathleen was now toying with the idea of retiring. Nothing definite, but they wanted to be as financially prepared as possible for when she did make the decision. For them, it was critical that they no longer had a mortgage payment during retirement. (They still needed to pay their taxes and insurance and maintain the home.)

We closed the loan in December of 2019.

I saw Duke a few weeks ago. He told me a different reason for he and Kathleen getting the reverse mortgage.

He said “Matt, we saw what happened to your mom and dad and it was a wakeup call. We realized that there is no guarantee in life that when Kathleen retires we will have the health to go and enjoy our retirement we have worked so hard to achieve. We got the reverse mortgage so that Kathleen can retire and we can go have fun while we can.”

Their plan is to RV. The former mortgage payment more than pays for gas and space rent at various RV parks. They want to spend time together exploring the nation and creating memories and enjoying each other while they can. They want to take advantage of the go-go years before they become the no-go years.

Is that a good reason to get a reverse mortgage?

Of course it is!

My dad is distraught, not over just losing his wife, but the fact that they worked so hard and sacrificed so much to grow a financial retirement garden. It’s now a garden with bitter fruit as he does not get to share it with her.

Nobody knows what God’s plans are for us.

Now, just because we don’t know what God’s plans are for us does not mean we should get all willy nilly with our money, assets and home equity. Prudence, logic and planning is still critically important.

A study from 2016 showed 83% of those that received a reverse mortgage were “satisfied” to “very satisfied” with their reverse mortgage. And 76% agreed with the statement “Having a reverse mortgage improved the quality of my life.

If most people are happy with their decision to get a reverse mortgage and it improved their life. Why wouldn’t more people consider the reverse mortgage as an option in retirement? Especially if it means more quality time with loved ones, creating more life experiences and memories as well as an overall more enjoyable retirement.

Ovarian Cancer is a silent killer. The signs are often overlooked and dismissed. Here is a link about the signs of Ovarian Cancer. Share it with the women you love. It could very well save their lives.

Matt Allen NMLS 254296 is a Reverse Mortgage Specialist with Reverse Mortgage Funding in Medford, OR. He has been in the mortgage industry for 16 years and has been specializing solely in reverse mortgages for the last 5 years. He is the author of "The Ultimate Guide to Reverse Mortgages", has written articles for both local and nation publication about reverse mortgages and has been interviewed on TV and radio about reverse mortgages multiple times. He can be reached at 541-894-4464

This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency. 

Charges such as an origination fee, mortgage insurance premiums, closing costs and/or servicing fees, if applicable, may be assessed and will be added to the loan balance. As long as you comply with the terms of the loan, you retain title until you sell or transfer the property, and, therefore, you are responsible for paying property taxes, insurance and maintenance. Failing to pay these amounts may cause the loan to become immediately due and/or subject the property to a tax lien, other encumbrance or foreclosure. The loan balance grows over time, and interest is added to that balance. Interest on a reverse mortgage is not deductible from your income tax until you repay all or part of the interest on the loan. Although the loan is non-recourse, at the maturity of the loan, the lender will have a claim against your property and you or your heirs may need to sell the property in order to repay the loan, or use other assets to repay the loan in order to retain the property.

The estimates shown are based on a Oregon property and the HECM Annual ARM as of 10/23/2018. Assumptions include a home value of $207,000 and a 67 year old borrower with a $0 lien. The initial interest rate of 4.996% tied to 1 year LIBOR with a margin of 1.875%. In this example, closing cost include an origination fee of $4,070, third-party closing costs of $3,329.45 depending on purchase price or appraised value, and an up-front FHA Mortgage Insurance Premium of $4,140 depending on purchase price or appraised value. The initial Annual Percentage Rate (APR) is 5.496%. The information being displayed is for illustrative purposes only. Interest rates and funds available may change daily without notice. Please call 1-800-214-1265 or visit reversefunding.com for details about credit costs and terms.

? 2019 Reverse Mortgage Funding LLC, 1455 Broad St., 2nd Floor, Bloomfield, NJ 07003, 1-888-494-0882. Company NMLS ID # 1019941. www.nmlsconsumeraccess.org. Not all products and options are available in all states. Terms subject to change without notice. Certain conditions and fees apply. This is not a loan commitment. All loans subject to approval. L2479-Exp022020