Helping Seniors Make Informed Financial Choices

Julia J., age 78, thought about moving after a stroke limited her husband Tom’s mobility.  Stairs made it hard for him to get in and out of their house and, even though they both enjoyed gardening and bird watching, there was a lot of yard to take care of.

On the other hand, their ranch house was in good repair and completely paid for.  It was a great location within walking distance of a grocery store, drug store, and their church.  Their daughter lived just ten minutes away and the neighborhood was filled with friends, old and young, who watched out for each other.  A perfect place to live.

The J’s knew they could continue to live in their home if they made some modifications.  They were leery, however, because of the cost and their limited source of ready funds.  Since retiring, they had gotten along on their Social Security payment and Tom’s pension.  But, with Tom’s stroke, their health care costs were ballooning.  Julia didn’t want to lose their home if it became impossible to make monthly payments.  They started looking for a new place to live.  Then they read an article about reverse mortgages.

 

One of the most effective ways to understand and appreciate the life changing values of a reverse mortgage is to hear the stories of other seniors with reverse mortgages.  From time-to-time, I will share those stories, such as the one below, with you.

The J’s qualified for a reverse mortgage of $150,000.  They used $30,000 to have ramps installed, replace the bathtub with a walk-in shower, and move their flower gardens into raised beds that could be reached from sitting on the edge or from a wheelchair.

They are going to take the rest of the money as a line of credit that they can draw on as needed.  They will use it to pay for yard care and housekeeping assistance, medical costs, and occasional treats, like more frequent visits to family and friends living elsewhere.  And, don’t forget spoiling the grandkids.

“It is so reassuring to have this cushion,” says Mrs. J, “and to know that should something happen to either one of us, the other can live here as long as they are able.”

“Our children have always loved this house for the memories it holds,” she adds.  “Now they love it even more because it enables us to live the way we want—independently and comfortably.”