Why a Reverse Mortgage Works For Me
"When a mortgage broker friend first mentioned a reverse mortgage as a possible solution to the problems confronting me, I rejected the idea out of hand. After all, the equity in the house was a big part of what I wanted to leave to my son. The broker, I should point out, had nothing to gain, one way of another. His business was in California and he had no license to practice in Arizona. He could not have negotiated a mortgage for me if he’d wanted to. He was merely trying to help me think through my options.

I loved my house in Tucson and did not want to sell it, but maintenance costs were eating up every spare penny of my income, which had dwindled considerably in the years since I had purchased it – thanks in no small part to stock market losses.

A year or so later, I had occasion to revisit the idea of a reverse mortgage. A realtor friend recommended I talk to Jerry Heintze, of whom she had a high opinion. She said he was well-informed, low-key would never push me into anything I had doubts about), and completely trustworthy.

The rest, as they say, is history. Jerry made sure I thoroughly understood the terms, the pros and cons and the costs of reverse mortgages. Make no mistake, they are expensive, and it is the lender who gets the benefit of compound interest in these deals. And, like life insurance, the bank is betting that you won’t live long enough to leave them holding the bag for a house that is worth less than they’ve invested in it. (This could happen if you outlive actuarial expectations-so there’s a big incentive for you to stay healthy.)
You are required to pay income and property taxes and do all necessary maintenance. And although the income you derive from the mortgage is not taxable, you will not longer have the benefit of a nice fat mortgage deduction.
So, how am I doing almost two years in?

Well, I get to stay in the house I love, in an area I love and one that suits the way I live – and I have no m ore worries about meeting mortgage payments. That counts for a lot in the way of fewer sleepless nights. I have to mange my money carefully to make sure I can cover taxes and maintenance (something always needs dong and it’s usually unexpected). But so far the trade-offs are more than worth it.

My son and I talked al this over thoroughly before I decided on a reverse mortgage. He understands that there may be little left in equity for him when I die, but he assures me that he is glad I’ve found peace of mind. He is also relieved, as who wouldn’t be, that I will be amore able to look after myself and not be greatly dependent on him."
Ann S.