The wellbeing of a child is typically a parent’s highest priority; parents make every effort to keep them healthy, happy and safe. However, as time goes on, these roles can reverse, with adult children feeling responsible for the care of their aging parents.
Starting the Conversation
Navigating this transition is not always easy. Parents often want to avoid being a burden, while their children may fear overstepping their bounds. An open, honest discussion can make all the difference, especially if it starts sooner rather than later.
Procrastinating could limit the options that are available, or introduce elements outside your control. Starting a dialogue early, before there are pressing health or financial factors, will make for a less stressful discussion and allow the emphasis to be on long-term goals.
With the conversation underway and specific goals in mind, it will be much easier to spot the obstacles ahead and the options available to overcome them. For adults heading into retirement, financial security is critical, and the vast majority want the ability to stay in their homes as they age.
For families with a plan, a reverse mortgage could be one of the best financial tools at your disposal.
The thought of borrowing against a home’s equity, especially for someone who has spent much of their life watching that value grow, could be unsettling. The emotional attachment most of us have to our homes only adds to the hesitation. For those reasons, it’s important for families to have a solid grasp of the facts surrounding reverse mortgages.
A Flexible Tool
While limited to homeowners 62 and older with substantial equity in their homes, reverse mortgages can be much more than just an income stream. The loans can be part of a larger retirement strategy to maximize investment returns, help aging homeowners downsize or relocate, or even allow individuals with mobility challenges to stay in their home by funding accessibility improvements.
Regardless, homeowners retain the title to their home, and enjoy the security of knowing their heirs won’t be held liable if the loan exceeds the value of the home.
If you’re near or at retirement age, or have parents who are, now is the time to start planning for the future. We invite you to reach out to an Open Mortgage Loan Originator who can educate you fully on reverse mortgages, and let your family decide if it’s the right tool for their future.