Reverse Mortgages can provide older adults with another option when it comes to their finances.
This segment of Seniors Today brings on Harlan Accola, the Reverse Mortgage Director for Fairway Independent Mortgage Corporation and Sal Bastawy, a Reverse Mortgage Advisor for Fairway Independent Mortgage Corporation.
What is a Reverse Mortgage?
“In simplicity, the bottom line is that in a regular mortgage, you take cash every single month and you turn it into equity,” says Acolla. “A reverse mortgage is the privilege that you get when you get old enough at 62 years old where you can simply turn that equity that you created over 10, 20, 30, 40 years and turn it back into cash.”
The group also discussed some misconceptions that people have about reverse mortgages. A lot of people assume you will lose your house if you have a reverse mortgage, but Accola reassures that if you pay your real estate taxes, you won’t lose your house.
“When you don’t make you payments on your taxes, that requires a foreclosure,” says Accola.
A reverse mortgage can also protect the heirs of the estate.
“A reverse mortgage is a non-recourse loan,” says Bastaway. “That means if the loan amount ever exceeds the home value, the lender cannot go after the rest of the estate of the heirs or any assets.”
To learn more about reverse mortgages, or to get a free copy of Accola’s book “Home Equity and Reverse Mortgages: The Cinderella of the Baby Boomer Retirement” visit their website.
Seniors Today is a show focused on what seniors and their families need to know to live their best lives.
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