Reverse Mortgages Can Help Seniors Stay at Home By Kimberley Edgar

Reverse Mortgages Can Help Seniors Stay at Home By Kimberley Edgar

Reverse Mortgages Can Help Seniors Stay at Home
By Kimberley Edgar
Reverse mortgages may help homeowners 62 and older stay in their homes.
  It used to be AAA’s reverse-mortgage professionals saw one in five people they worked with have an existing mortgage to pay off.
  But that has risen to four in five, as increasingly more seniors have to mortgage their properties to make ends meet, said Deb Imondi, Vice President of AAA Southern New England Bank.
  In one instance, a 71-year-old woman juggling the pressures of caring for her ailing husband – who has Alzheimer’s – and physically handicapped daughter – who battles multiple sclerosis – came close to losing her home in a scam, Ms. Imondi said.
  AAA teamed with a prominent Boston law firm working pro bono to help the woman secure a reverse mortgage.
It let her satisfy existing liens, reclaim her house of more than 50 years and have peace of mind – and she had some money left over, Ms. Imondi said.
  While it’s a heroic example of AAA saving the day, it’s one of many where AAA’s reverse mortgages help seniors stay at home.
  Homeowners at least 62 years old are eligible to tap into their equity and take a reverse mortgage. Earlier this year, the loan amount limit rose to $625,500, which translates to potentially more equity available for higher-valued homes.
  Those opting for the Home Equity Conversion Mortgage from the start are ensured they won’t have to make a monthly mortgage payment for as long as at least one of the owners lives on the property. These represent the majority of reverse mortgages in the United States.
  Homeowners must continue to pay taxes and insurance, but it’s more feasible without a monthly mortgage payment.
  “With sufficient equity, existing mortgages can be paid off, relieving a homeowner of their monthly outgo, thus improving their cash flow,” Ms. Imondi said.
AAA’s trusted professionals can help seniors determine what works best for them.
  “Each mortgage is structured to the borrower’s needs; therefore, it is important to speak with an experienced professional who has dealt with issues of estates, trusts, liens and family situations that can impact the transaction,” Ms. Imondi said. “It’s important you know with whom you are dealing and that you bring trusted family or advisers into the discussions.” orb
 






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