This story came from our client Jerry Garner, Reverse Mortgage Specialist with TowneBank Mortgage. We thought it would be of interest to share it.
"Mr. and Mrs. Grace (ages 62 & 66) were living comfortably on Johns Island (they moved here from the upstate 2 years ago), until their daughter went thru a divorce and she and the grandkids needed financial help. The Grace’s did what most parents would do and agreed to offer the support and welcomed them back home (for a while)…after a few months, they consulted with their financial advisor to make sure they had the money to help their daughter and grandkids and learned they did not have enough savings to maintain their own personal lifestyle, while also supporting their daughter and grandkids. So what to do…
Their financial advisor and I met with the Grace’s and the daughter to go over how equity in the home is an asset and can safely be accessed to cover expenses, without creating a mortgage payment. They were thankful to learn the facts about the reverse mortgage and understood if they access equity now--there will be less equity in the home for the daughter when she inherits the home.
Long story short, the Grace’s decided to let me assist with a federally-insured reverse mortgage to generate additional cash flow now (avoiding spending down their own savings) and after 7 months, their daughter was able to find a good job and rent an apartment close by.
Mrs. Grace told me she cannot put into words how valuable the reverse mortgage was to allowing them to financially help their daughter get back on her feet."