-Female Reverse Mortgage Expert Helps Seniors Save Homes During Stock Market Uncertainty-
NEW YORK, May 1, 2025 /PRNewswire-PRWeb/ -- When questioned about the volatility in the current stock market climate, a majority of financial advisors recommend that their clients simply hold and await the eventual rebound. But for the approximately 73 million Americans 65 and older, this might not be an option as they may literally run out of time before their investments are restored. In fact, according to the Centers for Disease Control (CDC), the average life expectancy in the United States is 78.4. Senior Loan Originator Laura Mortiz of Classic Mortgage has been helping elderly individuals alleviate the stress of diminishing financial returns, while ensuring that they continue to age profitably within their own homes by educating them on the importance of a reverse mortgage as a supplemental means of retirement income and viable solution to cover escalating expenses during our turbulent economy.
"Simply stated, many people aged 62 and older are extremely fearful that they might not make it to the financial finish line," said Laura Moritz of Classic Mortgage. "Most have already been forced to withdraw money from personal bank accounts and other liquid assets to pay bills as their stock exchange investments plunge downward. This reality not only jeopardizes their ability to stay in their home environment, but also negatively impacts their future legacy on family members."
Moritz explains that a reverse mortgage is a loan designed to convert the equity in one's home into available cash. While traditional mortgages require monthly payments, a reverse mortgage actually compensates the homeowner either with monthly stipends or one lump sum. The greatest benefit is that there are no payments due as long as a person lives in their home, which increases their monthly earnings. Further, the payments a borrower receives from a reverse mortgage aren't subject to income taxes because they're considered loan proceeds.
As a result, reverse mortgage payments can be a good way to supplement taxable retirement income to minimize annual tax liability. It's also a good alternative to selling one's home if the value has appreciated significantly since the purchase date and the person is worried about a capital gains tax. Additionally, homeowners can use some of the proceeds to pay for a term life insurance policy that is greater than the amount of the loan.
Moritz notes that although reverse mortgages have been around since 1961, they represent only a very small fraction of loans compared to traditional mortgages. As an expert who has successfully originated hundreds of reverse mortgages within 35 years, Moritz debunks some of the common misconceptions about reverse mortgages:
Myth #1: It's difficult to get approved for a reverse mortgage
Fact: To qualify for a reverse mortgage, a person need only be 62 years or older and have equity in their home. The total loan offering is based on their exact age (the older the person, the greater potential amount of the loan), the home's value, and interest rates. On the other hand, it's more difficult to qualify for a traditional mortgage, which is based on a person's income level and credit score.
Myth #2: The bank will own the house
Fact: In a reverse mortgage, the homeowner continues to own the house. The lender secures the loan with a lien on the property, but the homeowner maintains full ownership and title. This means that the homeowner can renovate the property, sell it, or pass it on to their heirs. It's important to note that the person must also keep up with home maintenance repairs and continue to pay annual property taxes and homeowners' insurance. The reverse mortgage loan becomes due and payable only when the borrower dies or moves.
Myth #3: A reverse mortgage increases debt, can use up equity and create issues for heirs
Fact: If you remain in your home for a long time, it's possible that your reverse mortgage loan balance may eventually grow larger than the value of your home. However, the good news is that reverse mortgages are considered "non-recourse" loans, meaning that the lender cannot demand that you or your heirs pay a penny more than the home is worth. When you pass, the estate has one year to sell the home and pay the lien or refinance. This is no different than a regular mortgage lien. Moreover, since reverse mortgages factor in interest based on the life expectancy of the borrower, if the homeowner dies sooner, the remaining interest is deducted from the lien amount.
"Reverse mortgages are an amazing instrument for seniors who cannot continue to withdraw from their liquid assets without running out of money," adds Moritz. "With longer life expectancies and rising costs of living, a senior's fixed income from pensions, Social Security benefits and retirement may not cover necessary expenses or allow seniors to life the quality of life that they desire and deserve through their aging process."
Other ways that reverse mortgages can be a life-saving solution, especially during stock market uncertainty, include:
- Using the additional income to pay off an existing mortgage.
- Creating an additional credit line to the house which frees up cash.
- Purchasing a new home with no mortgage.
- Using the distributions to make the home wheelchair accessible and other necessary upgrades.
- Allocating some of the payments for home health care.
- Ensuring that non-married, co-habituating seniors receive survivor benefits.
- Accessing their children's inheritance now instead of waiting until they pass to help a sick child, distressed grandchild, thus, helping to enrich their lives.
- Helping the senior age in place rather than downsizing or renting their property.
"Reverse mortgages are a better big picture decision now more than ever for seniors," concludes Moritz. "It's important for elderly people to work with someone they trust and to put the loan in place before they lose cognitive ability to make decisions."
About Laura Moritz
As Senior Loan Originator at Classic Mortgage, Laura Moritz has successfully originated more than $500 million of both traditional and reverse mortgages. Growing up in a real estate family, Laura Moritz learned a great deal about the ins and outs of the industry at a young age. Over the past 35 years, she has assisted thousands of consumers with their mortgage needs. She prides herself on her extensive knowledge, resources and experience as well as the desire to exceed expectations. She is licensed in New York, New Jersey & Florida.
Media Contact
Alisa Picerno, Classic Mortgage, LLC, 8608691509, [email protected], www.classicmortgagellc.com
SOURCE Classic Mortgage, LLC
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