We change people’s lives every day, that is one of the greatest feelings that I get when I go to the office each day working with our clients. What we do for our clients is truly life changing. In fact, we have changed the lives of 41 individuals and couples over the last 10 months. Therefore, I want to share some of the demographics with you, so you have a real understanding of the true impact that reverse mortgages have had on these particular 41 clients.

Since December, we have helped change the trajectory of 41 clients’ retirement by incorporating home equity into their financial plan. Here is a high-level breakdown of who these clients are:

• 20 married couples
• 19 single women
• 2 single men

I typically do not like to generalize, but after reviewing these demographics, one of the most obvious realizations that I had is the fact that single women are generally more open to this discussion than single men. With most of these specific clients, the single women were either widowed, or divorced, and the loss of income caused a real strain on her finances. The reverse mortgage was a huge help, both emotionally and financially. It seems that maybe single men might believe they can handle their finances without assistance from other professionals, or maybe they are simply more stuck in their ways and are not willing to make a change. It could also be that single women (widowed or divorced specifically) are simply open to asking for help and are willing to make a change more easily than men.

It also became very apparent to me after reviewing our clients over the 11 months, that many married men are looking to protect their spouse if or when something happens to them in the future.  In many of these cases, the husband wanted to do the reverse mortgage to ensure that their wife will not incur a major strain on the finances (and be able to stay in the home) if the husband pre-deceases the wife. 

Overall, it is also important to know that not one of these clients’ situation was identical. Meaning, every client has a unique story and unique goals that are personal to them. However, the reason why the Home Equity Conversion Mortgage (most common type of reverse mortgage) is such a great tool is because the program is so versatile. Reverse Mortgages are simply not a one size fits all solution. There are fixed rate and adjustable-rate options. There are lump sum and monthly payment plans and options with a line of credit that increases over time. There are clients that choose to make monthly payments when others choose never to make a payment (*you must always pay your property taxes, homeowner’s insurance, and HOA dues). There are clients that take a lump sum to pay off their current mortgage and other clients who take cash out to buy rental properties or to help family members with college or other finances. The reverse mortgage can ultimately be used for anything you want, there are no restrictions on how you use your equity.