PSA: I thought a reverse mortgage was just a bad loan for desperate people

My dad in Phoenix was set on getting one last year and I fought him on it for weeks. I told him it was a scam that would take his house, you know? But then we sat down with a real advisor, not a salesman, and she broke it down. She showed us how the loan only comes due when he moves out or passes, and the bank can't get more than the house is worth even if the value drops. The key was using the money to pay for a home health aide three days a week, which let him stay put. It was the right tool for his exact problem. Who else has seen a plan they hated turn out okay?

3 comments

3 Comments

angela_patel757d agoMost Upvoted

Took my mom to a fee-only planner who showed us a solid plan.

stella227d ago

My cousin in Austin got one and the fees were crazy high, like 5% of the loan value right off the top. It worked for him, but I still wonder if there was a cheaper way to get that cash.

jennifer_jones177d ago

My uncle in Tampa was in the same boat two years ago. I was totally against it and thought it was the worst idea ever. But he used the cash to fix his roof and put in a walk-in shower, and now he's safe at home. It completely changed my mind when I saw it work for his specific needs. Getting that good advice makes ALL the difference.