Reverse mortgages are growing in popularity in our area as senior citizens try to keep up with the increasing cost of living.
A reverse mortgage is a loan through the government available to homeowners 62 and older.
The loan is for 50 to 75% of the value of your house, and you only make payments after the house is sold or your estate covers the cost after you die.
James and Edna Cameron have owned their Amarillo home for 46 years. But recently the economy has forced them to seek financial help. "Yes, I worried about keeping the bills up and if it was gonna be late," says Edna.
After beginning the reverse mortgage Cameron says a weight has been lifted off their shoulders.
"We had quite a few bills and we had to pay them off and we got all that taken care of so now we're better, a lot better."
Advisor Jim King says he is drawing up 300% more reverse mortgages in the last year.
"Instead of trying to come up with additional income monthly other than your social security and if you are lucky a little retirement this allows them to take out money and put it to work and help raise a monthly interest off it and that helps raise their income," says King.
Reverse mortgages are not for everyone. Visit with your financial advisor to see if it is right for you.
Your Medicaid payment may be affected if you put the funds into an account that accrues interest.