November 17, 2005 • ISSUE 42 / VOLUME 1

Reverse mortgages and aging in place

Financial Freedom provides options

Reverse mortgages are helping a growing number of Hawaii's seniors remain comfortably in their homes while addressing their current financial needs.

By Percy Hara

PERCY IHARA Reverse Mortgage Specialist Certified Senior Advisor

In Hawaii, many seniors would prefer to "age in place" the rest of their lives and enjoy the remaining years with their family and friends close by.

In fact, our local Island culture of having families care for each other is a major reason for seniors wanting to stay in their homes.

Recently, the National Council on Aging (www.ncoa.org) conducted a study to show how Reverse Mortgages can help seniors pay for long-term care needs while remaining in their home.

"This study is important because it shows, for the first time, that elderly homeowners – many with chronic conditions, can use reverse mortgages to pay for care at home," said Jim Knickman, vice president for Research at the Robert Wood Johnson Foundation.

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"We hope that these findings will prompt new thinking into how the nation addresses the challenge of financing long-term care needs," Knickman said.

In Hawaii most seniors own their home and are literally sitting on millions – if not billions – of dollars in equity.

A reverse mortgage is one of the best options for being able to live the rest of their lives in the home that they may have raised their children in or built an active community around.

With so much wealth tied up in the home, the decisions that today's older homeowners make about this financial asset can significantly impact their decision on the quality of life as they age in place.

In recent years, there has been a renewed interest in reverse mortgages to pay for home care services, as well as to fix up the home or help out other family members.

A reverse mortgage is wonderful for those who, for whatever reason, may want or need money, and it doesn't Medicare or Social Security qualifications.

Reverse mortgages are specialized loans that allow homeowners aged 62 and older the ability to convert a portion of their home equity into cash while still being able to live in their home for the rest of their lives without making a mortgage payment.

Homeowners are able to age in place and withdraw their equity via a lump sum payout, monthly payments or any combination of the two ... or simply leave the money as a line of credit that is just waiting for them at any time in the future, whether it may be 5 years or 20 years down the road.

Even though a reverse mortgage may not be for everyone, those of us at Financial Freedom Senior Funding Corporation – the nation's only direct lender of all three reverse mortgage products – have helped many seniors in Hawaii enjoy their homes while remaining independent and free from financial worries.

Initially, there are two key questions one should think about when considering a reverse mortgage.

First, do you want to stay in your home for the foreseeable future – in other words "age in place?" Secondly, if you had access to additional funds, would you be able to improve your quality of life or at least give yourself some peace of mind?

If your answer is "yes" to these questions you probably should give us a call.

Percy Ihara is the Reverse Mortgage Specialist and Certified Senior Advisor for Financial Freedom, the nation's largest direct lender and servicer of reverse mortgages and Hawaii's experts. He will be conducting the final two free reverse-mortgage seminars of the year on Saturday Nov. 19 from 9-11 a.m. and 1-3 p.m. in the Plumeria Room of the Ala Moana Hotel on Atkinson Drive.

Ihara will answer all of your questions during this educational seminar, Call 368-6747 to reserve a space at this informational and educational seminar. Seating is limited.

You may also call this number for more information or to order the video "Making an Educated Decision."

On the Neighbor Islands call 866-369-6747 toll-free.

To schedule a seminar on reverse mortgages for your group or organization, call Financial Freedom.