Should Your Parents Get a Reverse Mortgage?

Do you have an aging parent who is having trouble making ends meet? While many adult kids would like to be in the position to help take care of their elderly parents financially, that isn’t always possible. Depending upon the situation, a reverse mortgage could help your parents manage their household expenses.

Talking with Mom and Dad

It’s not always easy for adult kids to initiate conversations with parents about their finances. Some parents may resent their kids attempts to get involved or may be struggling to maintain their independence.

Never try to force your aging parents to get a reverse loan. They may not be comfortable with the idea of giving up equity in their home, or simply may not know enough about reverse mortgages to make an informed decision. You can help your folks get the facts they need by encouraging them to set up an appointment with a reputable reverse mortgage counselor. If you are legally responsible for handling your parents’ finances, you can request a counseling session yourself.

Reverse Mortgage Eligibility

Only seniors aged 62 and up can qualify for reverse home loans. So even if you live with your parents they need to apply. They can apply as an individual or as a couple. They also must live in the home as their principal residence. If you have a parent with a medical condition that is likely to result in them having to move to a nursing home soon, a reverse mortgage doesn’t really make sense. Reverse loans must be repaid when borrowers pass awar or move out of their homes.

Learn as much as you can about reverse mortgages to help your parents determine if borrowing money this way can help them. You can get a free, no obligation reverse mortgage quote from our network of lenders.

 

Source: Francine Huff
November 18th, 2009

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