Reverse Mortgage Loan Blog

Mable Weeks has lived in her current home in Maryville for 22 years, along with her husband Clyde.

However, a year ago, the Weeks’ money grew tight, and they almost had to sell their house.

“With our ages, they don’t hire us when we get as old. Our bills were going high and our income was growing lower. So I didn’t have a choice,” says Mrs. Weeks.

They chose to stay in their house, using what is called a “reverse mortgage” to make ends meet. With a reverse mortgage, homeowners at least 62 years old take out a loan on a house that they own. They then receive a payment in a lump sum or monthly payments, and they retain ownership of the home until they die, at which time the mortgage holder assumes ownership.

“The borrower retains ownership to that home just as if they went to x-y-z bank and got a home mortgage on their home. The only difference is they do not have to make a payment,” explains John Smaldone, a reverse mortgage specialist with Transland Financial Services in Maryville.

The lender gets the money back when the house is eventually sold. The older homeowner does have to keep up with taxes, pay homeowners’ insurance, and maintain their property in good condition.

However, just because the reverse mortgage worked for the Weeks family doesn’t mean it’s right for all elderly homeowners.

John Smaldone says that if a homeowner plans to leave their home to heirs, or sell the house in a few years, then a reverse mortgage may not be practical.

Mable Weeks says a reverse mortgage was right for her. It allows her to stay in her home, while offering funds to live on.

“Now, I have money to use for emergencies and whatever, and I don’t have to worry about it,” says Weeks.

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