On Thursday, the Today Show featured reverse mortgages in a segment about ways to afford the financial costs of aging parents.
Matt Lauer introduced the feature with an astonishing fact: “The cost of Healthcare is twice as much after the age of 85 than it is before the age of 85,” he said.
With stats like that, it can be hard for senior Americans and their children to find ways to cover those costs. In the segment, “How to Handle the Cost of Aging Parents: Is a Reverse Mortgage Right for You?” Lauer speaks with Today Financial Editor, Jean Chatzky, about how a reverse mortgage can help.
Chatzky briefly explains how a reverse mortgage works, when it comes due, and how lenders determine the amount you can get – age, amount of equity in the home and interest rates. She goes on to explain how you can receive your proceeds. While she mentions the monthly distributions and lump sum options, she highlights the line of credit. “I like this last option because as your retirement portfolio, your investments, go up and down with the market, this can be kind of like a back pocket emergency cushion.
Wrapping up on the topic of reverse mortgages, Chatzky did remind viewers that with a reverse mortgage, you have to be able to still pay your property taxes and homeowners insurance and take your spouse into consideration if they are not on the reverse mortgage, and of course, watch the spending of your proceeds so you don’t go through the money to quickly.
The Today Show is the most recent in many media reports about the advantages of a reverse mortgage. To read more stories from various newspapers, magazines, and news shows, please visit our In the News page.
The Today Show does not endorse, sponsor, or is affiliated with One Reverse Mortgage or its product.