I recently attended a class about Reverse Mortgages and it was eye-opening to say the least! In the past, Reverse Mortgages were not the best option long term. A couple of years ago the regulations were changed and it is now a very good option for those over age 62. I will not attempt to explain HOW they work, but the flier below should be helpful in allowing you to get the gist of it.
I actually had a client of mine call me about doing a Reverse Mortgage last year and immediately refered them to my lender. My client had already spoken to someone and found the fees charged to obtain the RM were very steep. Keith and Melanie Swenson with Security Home Mortgage assisted my client with their RM instead and saved them thousands of dollars, In that particular situation, my client was in his 70’s and had a pretty steep mortgage payment, with a HELOC (second mortgage) on their home as well. Their home now essentially acts as their bank and provides “income” (no house payment) saving them thousands every month. Because of the way the loans are now structured, families no longer have to worry about being under water after parents with a RM have passed away. If you or a family member is worried about your retirement being sufficient to sustain you, please reach out to my lender and see if a Reverse Mortgage would be a good fit for you!