“This Is Too Good To Be True”

That statement is a wonderful place to start. Over the years, at some point in the conversation, I’ve heard that from at least 40+ borrowers. They usually say that about the time the enormity of the opportunity offered by a Reverse Mortgage sinks in. 

Here is a very personal story that includes that statement and a big realization; My parents. 

Around 2011, my parents owned their home free and clear but they needed access to some extra money. I took it on myself to look into their options. 

I investigated a cash-out refinance; that wasn’t what they wanted and they likely wouldn’t qualify in retirement. 

A HELOC (home equity line of credit) was a better option, but the whole qualifying issue popped up again, and they would need to make a payment.

We, the family, didn’t have the excess resources to share with them.

Then somewhere or somehow, I can’t exactly recall, the idea of a Reverse Mortgage came up. Again, I took it on myself to look into their options. Believe it or not, it was difficult to find information, or locate a lender to talk with. 

Everyone I knew in the Mortgage space either didn’t know anything about a Reverse, or they were not interested in helping us.

Finally I found a guy. We sat down with him, we all liked the idea. My parents came out and made an appointment for HECM (Reverse) counseling. I came away with a job. I got my Mortgage Loan Originators license, and started with a lender in the call center. 

For the next eight years my folks used their Credit Line to pay for things above and beyond their monthly cash flow. Things like a few new teeth for my dad, and aging-in-place upgrades for their home.

When they sold their home and paid off the balance on their Reverse Mortgage, they ended up with the same amount of equity they had when they took out the Reverse Mortgage. 

Once my father and I were talking with a friend, and that person asked my dad what he thought about his Reverse Mortgage, dad said, “It wasn’t too good to be true, it was like having my cake and eating it too.”

A Real Reverse Mortgage Story.

Thanks for stopping, looking & listening

Mark Schmidt