I just had one of those wonderful situations where you see the twinkle in someone's eyes. A financial planner partner of mine had referred me to an older couple, ages 78 and 82. Last night we signed the paperwork for them to finalize their reverse mortgage. Let me set the stage for this, because it is a beautiful thing.
- This couple paid their home off about 30 years ago
- They have been using a TV antenna for their TV stations for 40 years (not cable or satellite). They literally only have 3 stations left
- They had a small mortgage on the home and some credit card debt
- They were using a home equity loan to pay for life's needs.
What did the reverse mortgage do for them? It eliminated their mortgage payments and gave them a very substantial quality of life increase. Before we were even done signing the gentleman's son made a comment about "Now dad can get a new TV and set up the DirecTV". This guy worked his butt of and paid his house off 30 year ago. And now I get to share in the joy of him getting rid of his 30-some year old- barely-working TV, and his 6-foot, 40-year old antenna.
It couldn't have been more perfectly stated when his son said, "Look at these two ... I haven't seen them this happy in 20 years. They are like newlyweds."
Some quick facts about reverse mortgages ...
- You must be 62-years old
- Have a fair amount of equity in your home (home does not have to be paid off)
- Income does not affect social security income
- Income from Reverse Mortgage is not taxed
- No payments on this mortgage ever need to be made for the life of the home owner(s)
- The house remains in the owner's name and title is theirs until property is sold
- When the owner no longer lives in the home, those that inherit the home have 6 months (or longer) to refinance or sell, and they will NEVER have to pay more than the home is worth when selling. Even real estate commissions and other costs will be paid through sale and will not be required above the sales price.
Reverse Mortgages for all 50 states. Local reverse Mortgage help in Gloucester County, Camden County, and Salem County, NJ. Call Steve for more information at 856-419-3561.