Reverse Mortgage

    When people ask me what I do as a Reverse Mortgage Specialist for Financial Freedom Senior Funding Corp. I explain to them our company's mission statement, which is "To Enhance the Lives of Seniors by Providing Financial Security and Independence."  That mission statement is simple and cuts right to the heart of why a person might want to consider a reverse mortgage on their home.

   For many seniors the "golden years" have turned out to be more difficult than they might have imagined during their working years.  Property taxes continue to soar, homeowners insurance has become more expensive, the cost of gasoline and heating oil has skyrocketed and health care costs take a bigger bite of the budget each year.  In a household where Social Security, a small company pension and personal savings are being stretched to the limit, a reverse mortgage can unlock a portion of the equity that people have in their homes and provide tax free income through a government insured reverse mortgage product.

   A reverse mortgage is a government insured loan product for seniors age 62 and older that provides loan proceeds to a borrower, which is not taxable income, doesn't require them to make a monthly payment of principal and interest and doesn't require repayment until the last borrower has permanently left their home.  The proceeds of the loan can be used for almost anything from paying current bills, to consolidating debt, to making necessary home repairs or improvements, to taking that long postponed vacation trip you've always wanted.  More importantly, the home owner will never be required to leave their home until they're ready.  The only caveats are that the home must remain the borrowers primary residence, they must continue to pay their property taxes and insurance and keep their home in good repair.

   If it sounds like a reverse mortgage could enhance the quality of your life I would enjoy having the opportunity to discuss them in more detail with you.

   Rick Newell is a Reverse Mortgage Specialist for Financial Freedom Senior Funding Corp.  Rick has been a banker in the mid coast region of Maine for almost 30 years.  In addition he has been the Pastor of the Newcastle-Alna Baptist Church for the past 17 years. Rick and his wife Debby have lived on the River Road in Newcastle for the past 30 years. You can call Rick at his home office at 207-563-5961 or his cell phone at 207-631-1196.  You can also reach him by email at rnewell@financialfreedom.com .

Comments

[Mike Volpe]

Hey Rick, good info, I don't know if you had a chance to read the USA Today this past weekend however they had a literal hit piece on reverse mortgages. It was terribly one sided, unfair, and totally twisted the reality of the situation. It was a total disservice to their readers and I hope that folks find the truth in that muddle. Here is how I analyzed that article...

http://theeprovocateur.blogspot.com/2008/01/demonizing-reverse-mortgages.html

[Rick Newell]

Hi Mike:

I didn't see the article you refer to, but I read your piece and it's very good.

There are a number of misconceptions about what reverse mortgages are and what they aren't. If you take family dynamics into consideration they aren't for everyone. Children often have a lack of understanding that the financial circumstances for their parents have perhaps changed over the past 10 or 15 years. Of course, they have options as well if they're opposed to mom and dad taking out a reverse mortgage.

#1) They can directly assist their parents financially or;

#2) If they have an interest in owning their parent's home they can arrange to purchase the home themselves and provide their parents with a life estate.

You referenced an individual who was unable to refinance the reverse mortgage her parents had taken out on their home. I have to suspect that the daughter may have had credit issues of her own that prevented her from doing so, although I say that without having had benefit of reading the article in question.

Borrowing for any reason and under any circumstances is a very personal decision. A reverse mortgage can be a tool that enables a senior to be able to have enough money to live on and to ensure that they're able to remain in their home as long as they may wish.

Thanks again for your comments and your article.

Rick