Another Option: Reverse Mortgage

Many families worry about the financial future of their retired parents. For peace of mind and the well-being of your parents, it’s important to talk with them about the kind of financial help they may need to “age in place.” Most people want to live out their years in the home they have lived in for many years, a place full of memories and familiar surroundings.

If your parents are 62 or older, it may be helpful to learn about reverse mortgages, a strategy that offers many options, including aging in place, help paying bills, funds for home improvements or travel, or financial means to help children and grandchildren. If you have heard about the reverse mortgage financial loan program from someone other than a professional loan officer, you may not have all the facts.

Reverse mortgage programs turn a portion of home equity into cash, which is then paid to the borrower either as a lump sum, in fixed monthly installments or as a credit line. Eligible homeowners ages 62 or older continue to own and live in their home until the last spouse passes on. The loan is not repaid until the borrowers leave or sell the home. The amount of the mortgage depends on the age of the youngest spouse, the home’s market value, and the specific reverse mortgage program and interest rates. You can see that a reverse mortgage program for your neighbor could be very different from yours.

During the program, which lasts as long as the borrowers live, they are still responsible for paying property taxes and homeowners insurance, and keeping the house in reasonable condition; recent programs even have options to set aside funds for property taxes and homeowners insurance, if necessary.

Ask a reverse mortgage specialist to explain exactly how a program can help your parents live better today and be more prepared for the future. Sometimes a reverse mortgage is the one option that will allow your parents to stay in their favorite home for life. Planning and looking at all options allows you and your parents to choose what they want to do, instead of leaving their future up to chance.

For a free workbook for families on Aging in Place or to attend a free educational workshop, call: 808-234-3117.


Percy Ihara, Reverse Mortage Specialist, NMLS# 582944

Mahalo Mortgage, NMLS # 317240

808-234-3117 | email:


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