She Was How Old?

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 by Dallice Tylee


Back in February of this year, I wrote a piece about Reverse Mortgages.
I think they are kinda cool.  A creative way to stay in a house as long as you are physically able, while using a bunch of the equity to pay down other debt (credit card, medical etc) or spend the cash on something else that is important to you.

Occasionally I get asked if reverse mortgages are not just a rip-off.  That the bank takes the house and the surviving heirs are left short of an inheritance.

Yeah... no.  It doesn't work like that.  Read Reverse Mortgage Financing for a better explanation.

However, some people will end up staying in their homes longer than others.  It's a factor of environment, genes and luck as to how long a person will live and how capable they will be of living in that home - assisted or independently.

The lender is going to do a quick calculation based on age and try to "guestimate" the life expectancy of the mortgage holder, in order to determine how much equity the home owner will need to start with. The longer the home owner lives there, the better for them!

Eg: home owner takes out $100,000 in equity and spends it.  The bank doesn't collect another mortgage payment (ever) and the home owner continues to live there, for as long as they physically can.
If that is 10 years, great!  If that is 25 years, even better.

So when I read this article, I couldn't help but smile.
(Yes, I know the article is 15 years old.  That is incidental.)

Jeanne Calment at 120 years of age.

The French woman in the article, died at 122 years old.
She was 110 years old before she went into a nursing home!
Imagine if she had taken a reverse mortgage out on her house when she was 75 years old .
She could have enjoyed 35 years in her own home, not making a mortgage or rent payment!




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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Dallice at (303)746-6765.
------Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.