Many people think that getting a reverse mortgage does harm to their descendants. The reason for this is primarily because there is misunderstanding about how the loan gets paid off once the borrower either sells the house or passes away. The truth of the matter is that the individual who takes out a reverse mortgage is affecting only their financial future, not that of the people who love them. But if that argument's not enough to sway you, perhaps the fact that you can actually benefit your grandchildren by getting a reverse mortgage will be more convincing.
How is this possible? It's due to an announcement made last week about a partnership between a reverse mortgage lender and a school scholarship provider. The agreement between the two parties is that anyone who signs up for a specific reverse mortgage with the lender will receive a $5000 college scholarship for their grandchild. Now that's a win-win situation.
Of course, before you get any reverse mortgage loan, you'll want to make sure it's the right choice for you. You should work with a financial planner to assess whether or not you need the loan and whether the lender is right for you. You might find that you're better off refinancing your home and putting $5000 in the bank for your grandchild yourself. But it's good to see that partnerships like these are beginning to take place. They indicate that there are only more benefits to come for people who make use of the reverse mortgage loan.
Question of the Day: Would the scholarship bonus have the power to sway you if you were on the fence about getting a reverse home mortgage?
