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Considering a Reverse Mortgage?

Considering a reverse mortgage? I’m not a fan.

Reverse mortgages allow people over age 62 to borrow against the value of their home. They’re complicated and expensive.  I don’t like them because they increase the risk of losing your house. A Home Equity Conversion Mortgage is the most common, but all have financial implications. Money’s provided in a lump sum, in equal payments over a fixed period, months or years, as a line of credit or a combination of these, and the costs are numerous.

Here are some better options. If cash is needed for maintenance and repairs, seek a home improvement loan. If you’re a senior with low-cash flow, reduce your overhead via a tax deferral program. Refinance or consider carefully a home equity loan. Sell the home, then buy or rent something more affordable. Sell the home and move in with loved ones. Use the proceeds to convert a portion of your home or garage into a private apartment. Or build a tiny home, a pavilion with guest quarters or a Granny Pod on the property. Do your research. Cash-strapped seniors are vulnerable to so-called ‘solutions’ that can fix their financial problems. The extra fees and fine print can be difficult to understand. Seek reputable lenders to avoid banking scams. Those who are home-rich but cash-poor may find a reverse mortgage to be an option but the financial commitment must be fully understood. Finally and more importantly, pray and seek wise counsel. “Where there is no guidance, a people falls, but in an abundance of counselors there is safety.” (Proverbs 11:14 ESV) 

And if you’re overloaded with credit card debt, I recommend Christian Credit Counselors. They’ll create a debt management plan that will work for you. For more information call the Crown Helpline: 800-722-1976 or visit online at