Reverse Mortgage Helps Seniors

For seniors on a fixed income, owning a home will not help pay the bills. Unless a reverse mortgage.

Mike and Helen Maeda have been enjoying the view of Lanai Kukui Plaza for almost 30 years. But during this time your condo has deteriorated. Now retired on a fixed income, Maeda could not allow the necessary renovations.

His solution? A reverse mortgage. It is the opposite of a traditional mortgage because instead of paying the lender each month, the lender pays the Maeda. They took out their loan in January and work is underway.

The Maeda never be more than the value of your home. And money is still flowing, as long as Helen or Mike Maeda continue living here.

"While one of us is here," says Mike. "Until someone calls us from up or down."

If you are at least 62 years of age and a homeowner is likely to qualify for a reverse mortgage. The loan amount depends on your age and value of your home. The provider must have expertise taking reverse mortgages.

"No education needed besides just the mortgage and loans," says Maeda loan officer Nelson Oyadomari. "One must understand the problems related to high level. Medicare, Medicaid, Social Security, all these things"

The disadvantage of a reverse mortgage? Once the homeowner sells or dies, the loan must be repaid, plus interest.

"What happens to your heirs, you know, there is a little less capital that children could have anticipated," says Oyadomari. "But the majority of children are their parents to enjoy and not have to fight."

"I wanted to have my wife said after going", says Mike Maeda. "She did not have any retirement income social security only and that is not enough."

Helen Maeda counters, "He's big, but I think I will survive. It's so healthy."

No matter how long the live Maeda, who will have a place to live and monthly income that makes them feel safer