Originating a reverse mortgage is a special privilege I don’t take lightly. Why? Because my clients have told me that this loan changed their lives. I spent 25 years in traditional forward mortgage lending and no one ever told me, “This loan changed my life.” This simple statement is powerful, and it has given my work a whole new meaning.

Despite the bad press and misinformation that lingers, in my experience, people who have been properly counseled about all of their financial options prior to getting a reverse mortgage become raving fans. I believe this is because the loan expands the financial options that people often lose when they reach retirement age. It removes uncertainty about cash flow, allowing people to enjoy the freedom to remain independent for a longer period of time in the lifestyle of their choosing.

I have discovered one common thread among people who love their reverse mortgages. -They worked with knowledgeable professionals. -They were presented with all of their options from the start. -They received helpful counseling. -They decided that a reverse mortgage was the right decision.

These stories of real people (only the names have been changed) are wonderful reminders of why so many people love their reverse mortgage.

My Mom

Emotional upheaval, sadness and uncertainty describe the day of Dad’s stroke. Our family mustered the strength to decide on the right nursing home, one close enough for daily scheduled visits from a family member. But the toughest decision involved finances—how to pay for Dad’s care and make sure Mom would be OK.

Dad had retired from civil service and had adequate health insurance and a good pension. However, the $5,000 monthly nursing home bill was a budget buster. Our family home of 45 years was free and clear and would be easy to sell. But Mom’s health and happiness was every bit as important as paying a debt. We needed a better option. Someone suggested that we look into a reverse mortgage.

I was not familiar with reverse mortgages at that time. Good advice from experts in the field convinced me that it was the right choice. Mom would use the line-of-credit option to pay the monthly nursing home bill. As I sat with her through the counseling appointment, we became fully satisfied with her choice to move forward. When escrow closed, she was worry-free about paying for Dad’s care.

Dad passed after two years in the nursing home, but the comforting part is that we can still feel his presence in the family home we didn’t have to sell. At 90 years young, Mom is independent, healthy and happy in the home she loves. She no longer needs monthly payments from her reverse mortgage, and the line of credit continues to grow so more cash is available, should she need it. She tells me frequently, “Thank you, Michele. My reverse mortgage was such a good decision!”

It was this personal experience with my mom’s reverse mortgage that made me want to change my career from a forward mortgage professional to an exclusively reverse mortgage originator. Her reverse mortgage changed my life, too!

John and Sara

John, a commercial loan broker, frequently listened to my elevator pitch and brief presentations in our networking group. Over the months, he shared that his mom had a reverse mortgage and loved it. So when he and Sara decided to explore their options regarding whether he should retire early or continue working to pay their hefty mortgage, he called me. They briefly thought of selling, but with their only son returning from college they wanted to keep the family home for a while longer. Sara was 63, and John was a couple of months away from the magic age of 62. We worked out the numbers and decided to close their reverse mortgage shortly after his birthday.

John and Sara are not unique among reverse mortgage clients. They didn’t choose a reverse mortgage because they couldn’t otherwise pay their bills. Actually, they have savings, investments and future inheritance funds that will give them a comfortably independent lifestyle. However, by doing a reverse mortgage, they no longer have to tap into their “future nest egg.”

Without a huge mortgage payment, they have freed up cash flow so John can postpone his Social Security benefits until he’s 70, retire completely or work part time. Since they are both in their early 60s, their expensive home will likely retain sufficient equity should they decide to sell. John tells me that if they move, they will probably buy the next home with a reverse mortgage. John and Sara’s reverse mortgage expanded their options to choose the quality of life they wish to live right now.

Carol and Frank

Carol and Frank own a beautiful older home in a prime area with an expansive eastern view overlooking a yacht club, large bay and downtown skyline. Received by inheritance and without a mortgage, it made sense to consider a reverse mortgage for upgrades and some desired property additions. Their CPA is a mutual friend and told them to call me when they asked about a reverse mortgage.

A life spent in construction and the fishing industry has been good, but Frank wants to retire. Without continuing to work, obtaining a line of credit or other financing was not available. A reverse mortgage would make it possible to build a new four-car garage so he could restore antique cars, add a deck to the back of their home, travel with Carol and plan for living the rest of their lives in the home they love.

These baby boomers have real estate holdings and income sources that in the future will allow them to use and reuse their reverse mortgage line of credit. They told me in the beginning that at the right time, they will pay down the line of credit and then allow the growth rate to increase the amount available to them in the future. They feel that their reverse mortgage is a smart financial planning tool, increasing their cash-flow options and extending the life of their other assets.

Jenny

Jenny is an 80-year-old widow and musician. Her financial planner told her to call me months ago. She resisted calling until her best friend told her about how her reverse mortgage was allowing her to travel and enjoy life. Jenny got tired of hearing what she was missing, realized she was just paying bills and making ends meet, and called me. It’s not that she doesn’t have enough money saved or a good income from her pension, she told me clearly: “I just want to have fun!”

As we started the process, Jenny passed the new Financial Assessment easily, but she was concerned about what her kids would think about her getting a reverse mortgage. Her son and one daughter were supportive, but another daughter had concerns.

Including adult children in the process is extremely important to the homeowner. Inheritance issues must be addressed to give our clients complete peace of mind about taking a reverse mortgage. When possible, I encourage family or interested parties to meet in my office, and I take their phone calls at any point in the process. In this case, Jenny had her daughter present at her counseling session. I hear she’s very happy now with her mom’s decision.

Jenny is looking forward to a cruise with her best friend and extra cash to put the fun back in her life!

Making a Difference

These examples emphasize the fact that there are many individuals out there whose lives have been improved by a reverse mortgage. Lots of people thoughtfully choose to take this loan for many different reasons, and they often feel strongly about how much a reverse has helped improve their quality of life. As a reverse professional, witnessing the positive impact my work can have on others is a wonderful thing.