Reverse Mortgage (HECM) | Is It Right For Me?


“Is a reverse mortgage right for me.”

“Chris, should I get a reverse mortgage? Is this something I should do?” and many times I say, “It depends on what you want.” Many times people say, “Well, I want to leave the money (equity in my house) to my kids. If you’re going to leave it to your kids and not spend it yourself, that’s the right option for you.

However, If you are having a hard time financially, then the right option is probably to have a reverse mortgage. A reverse mortgage will make your payments on your mortgage for you. If you’re in a position where you don’t need the money, and you want to pass it off to your kids, well then, a reverse mortgage is a wrong option.

Different ways of thinking about a reverse mortgage

A reverse mortgage is often called a HECM – Home Equity Conversion Mortgage. Different ways of thinking about a reverse mortgage significantly influence if it’s right for you.

Some people say, “I worked for the money – I sacrificed to pay off the mortgage, I don’t see why I shouldn’t enjoy the benefits of it why should I struggle financially in my later years, I have medical bills, etc.” Moreover, often I see senior citizens still working because they cannot afford their mortgage if they retire!

The first step is always the same – explaining the process and the truths about a reverse mortgage. The myths, scare tactics and made up stories regarding these loans are created from 2 things in my experience.

1) Not knowing or investigating and listening to stories and myths of others who also do not know. When you listen to someone that is not a professional in these matters, including licensed loan officers that have never even done a reverse mortgage (less than 2% of loan officers have EVER done a reverse mortgage), it’s a lot like going to a plumber for a toothache. It doesn’t make much sense.

2) The children of seniors. So many reverse mortgages would be great for the Senior – however, a very high percentage of children do not want their parents to use this option. They’ll never admit it, but I can see it. It’s obvious; they are more worried about their inheritance than their parent’s security and comfort.

Not long ago, I helped a 76-year-old woman who was working at Target because her $1,000 a month mortgage was more than she could afford. She had a car that was falling apart and relied on credit cards to pay for expenses. So her only option was to work in her later years.

With a reverse mortgage, we proudly changed everything for her! We paid off the mortgage with a HECM refinance, so there were no more principle and interest payments. This gave her a cash lump so that she could buy and enjoy a new car. We paid off her credit cards, and we set up payments of $700 a month to her. She is now only responsible for paying the property taxes and homeowners insurance and basic upkeep of her home. She now had enough money to pay them and still take a vacation now and then! At 76 years old she was finally able to enjoy her retirement!

If you want to know how a reverse mortgage can help you with a 100% no obligation meeting, Call Chris the Mortgage Pro and stop guessing so you can start living! 310-350-2546