Children of the sandwich generation are seeing the reverse mortgage as their solution to their parent’s debt woes.
Jan is a 45-year-old office manager of a law firm downtown. She’s married with three teenage daughters, a nice home with a good size mortgage. Like many families, her’s has its share of financial obligations every month, not to mention saving money for their family’s future. But recently, Jan’s family had an additional financial concern. Her mother.
Pat, is Jan’s 75-year-old mother who lives on the other side of town, in her home of the last 35 years. Pat still works to pay for her mortgage payment, but recently, her work hours as substitute teacher had been fewer and fewer, which meant that Pat was having trouble every month to pay her mortgage.
Now, Jan had been giving her Pat $750 every month, to help pay her mortgage. This was not sitting well with Jan’s husband, Eddie. Even though he cares greatly for his mother-in-law; Eddie sees this was money that should be saved for their own family. As you can guess, the stress had been building worse as the months went by.
Another concern was Jan’s employer. You see, Pat could not afford the $800 of brake repair and tire replacement her car needs to run errands, let alone get to the school where she teaches. So, Jan was taking long lunches at least once a week to drive Pat to the grocery store and other errands. Recently, her boss had warned her that he will no longer tolerate these long lunches that take her away from her needed duties to the firm.
That was when Jan’s insurance broker, Adam, recommended a reverse mortgage for Pat. The following day, Adam arranged a meeting at Pat’s home with Jan & Eddie and Pete Tentler – a reverse mortgage advisor with Liberty Home Equity Solutions – to understand all their available options.
Pete showed how they could replace Pat’s current mortgage with a reverse mortgage, thus eliminating her monthly mortgage payments, forever. And with the remaining equity in her home, Liberty created an additional $80,000 credit line, available to Pat to use as she wishes, like buying a newer car.
In the end, Pat chose to get a reverse mortgage and now:
- Pat is happy with no mortgage payment and she lives with dignity in her home for as long as desired.
- Jan and Eddie are happy because they don’t need to worry about financially supporting Pat, every month and can afford the insurance policy.
- Jan’s employer is happy because, Jan won’t need to take long breaks away from the firm to run her errands for her mother.
Now you can see how a reverse mortgage will benefit the children of the sandwich generation.
If you are seeking to understand the truths of a reverse mortgage for you and your family, call me for a no obligation, face to face meeting at your home or advisors office.Questions? Contact us now!