Retirement Wishes Fulfilled
A reverse mortgage provides homeowners with funds that they can tap into for retirement. With all the baby-boomers now exiting the workforce for their golden years, many have taken advantage of reverse mortgages to sow some wild seeds and seek greener pastures. These retirees are more rock-n-roll than the rockin’ chair set.
Alex and Dawn from Claryville, New York, both 65, have worked their entire lives and lived in their home for over 38 years. Their son, Joel, recently moved out and they realized that the home could use some repairs and renovations. “Everyone thought we were going to convert our son’s bedroom into a guest room but we had other plans,” said Dawn. With money drawn from their reverse mortgage, construction quickly began on a $30,000 Art Deco style, movie-screening room. According to the couple, it’s now the heart of their home. They spend most evenings sprawled out in remote controlled lounge chairs eating popcorn while watching everything from Charlie Chaplin to Harry Potter. “Oh, we think the message was perfectly clear,” said Alex. “We love having guests but as soon as the end credits run and the lights come up, it’s goodnight and goodbye.” He laughs as Dawn smiles and nods in agreement.
Funds to Fly
Thomas, 84, of Munhall, PA, has been flying the friendly skies since the 1940s. One of the eccentric members of his flying club, a ‘Red Baron type’, offered to sell him a plane. “Of course I was interested, who doesn’t want to own their own plane?” Thomas said. “My granddaughter suggested I look into a reverse mortgage and so I called a friend of mine working in the business.” Thomas’ house was appraised at $149.000 and he received $80,000. “My retirement wish was becoming a reality,” he says. Thomas purchased the plane with part of the money and the rest is tucked away in an escrow account where it gains interest. “At my age, they’re trying to keep me off the roads but they’ll never get me out of the sky!”
Many retirees use reverse mortgages to sustain a decent way of life. The money is used for just about anything from home improvements to travel, healthcare to investments. And some even use the money to start a new business.
A Psychedelic Future
Beth, a 62 year-old business owner from Palo Alto, CA, looks forward to everything but retiring. “I’ve been rather successful in my textile business and while I want to take it a little easier, I don’t want to quit working.” With the help of friends and family, Beth embarked on a new endeavor. “Yes, it’s quirky and caters to an esoteric market but I love it.” With a portion of the funds acquired from her reverse mortgage, Beth is back to tie dying fabric like she did when she was a teenager. “The colors and patterns make me happy,” she says. “I’m thinking about taking this art form into this century with clothing for pets and things like smartphone protectors, but I’ll tie dye anything from hospital socks to wedding dresses.” Beth sells her apparel at swap meets, concerts and fairs but has plans to expand with a presence on the Internet and in retail boutiques.
The reverse mortgage option is a growing trend among senior homeowners across the U.S. It’s helped many retirees transition into a new stage in life and it helps many of them gain peace of mind, pay for medical needs, renovate their property and achieve retirement wishes.
(photo by rainchurch)