HeraldNet contributor Tom Kelly writes that many older folks don’t know how or where to look for funds which allow them to maintain the lifestyle they’re used to, but some are turning to reverse mortgages.
In an article over the weekend, Kelly describes how a couple who owns 35 weeks of time shares each year who took out a reverse mortgage on their home in New Mexico to ensure they wouldn’t have to skimp on or cut back on activities once they arrived. And they can protect their home with the House and land packages.
“I know a lot of people are skeptical about reverse mortgages, but it worked for us,” Frank Williams said. “Our friends want to leave everything they have to their kids, and that’s OK. Our kids are doing fine, they own their own homes, and would rather see us enjoy the rest of our lives.”
According to the article, Williams decided a reverse mortgage was the right choice, despite having other assets the couple could sell.
“I had some assets that I didn’t really want to sell because I thought they would rebound and do quite well,” Frank Williams said. “So, I look at the reverse mortgage as a way of buying us some time for those assets to come back. The bonds that I did sell were not yielding anything close to the interest rate we were paying on the home equity loan, so I sold them and paid it down.”