The boomers are here and quite soon, they are going to have to find ways to finance their future.
Many boomers and seniors own or are buying their homes.
There are a number of options when it comes to financing "the golden years."
One option is the reverse mortgage.
"But a unique benefit of the reverse mortgage, you have options. You're not required to make mortgage payments. Qualifying will be easier than a regular mortgage as well. And we only deal with people over the age of 62, which is a good thing. It's the best market to work with,” said Percy Ihara of Met Life.
There are a number of myths surrounding the reverse mortgage. Number one, once you pass away, your family loses the home.
"Even though the reverse mortgage has been around since 1989, people still think they lose their house after they lose their mortgage. Percy, if you're going to give me money every month or give me a line of credit, when I pass away you don't take my house and they'll say what's the catch?" he said.
Ihara says, there is no catch.
If the heirs decide, the house can be sold and profits go to pay off the reverse mortgage.
The main point of a reverse mortgage is to keep seniors in their home because aging in place is what most seniors want to do.
"All that, health-wise, mentally, emotionally. That's where they raised their children, that's where they're comfortable, they're safe, their neighbors know them and you know I speak around town all the time and I say 'who wants to go to a care home or nursing home and or care home facility?' Nobody,” he said.
In the case of any financial transaction, there will be fees.
But Ihara says a reverse mortgage transaction has some positive clauses.
"Government reverse mortgage Saver program has minimal closing costs. That's the newest thing that came out last year and people should do their research or give us a call, but the Saver program has probably one third of the closing cost of other mortgages,” he said.
