Sorry I just had to post this. This was a comment I recently made on another blog.
People just don't understand reverse mortgages. Yes, THEY ARE NOT FOR EVERYONE! But what about that 75 year old couple who have maybe one or two children who are well off and just want to see their parents increase their quality of life. In most cases THE CHILDREN OR THE HEIRS OF THE ESTATE ARE THE ONES WHO RECOMMEND THE REVERSE MORTGAGE. This takes pressure off of the children to support their parents and allows the parents to supplement their fixed income. Also, before you bash this product put yourself in the position of someone 62 years or older who has their retirement in stocks that just tanked 40%+. How are you going to afford retirement?
If that did not drive the point home then consider this. What about the wealthy elderly couple who have 4 children or so. They want to see their children start families and buy houses while they are still alive. They can pull say $400,000 out of their house that is free and clear, and give each child $100,000 now rather than in 30 years when they pass away and the children themselves are reaching retirement.
I dont write reverse mortgages. But they are a great tool for the right person. Again, they are not for everyone but in the right circumstance they can be the greatest thing that ever happened to a retiree.
Comments (2)Subscribe to CommentsComment