WDBJ7 Roanoke News and Weather NRV Lynchburg Danville | Widow calls reverse mortgage a blessing

Widow calls reverse mortgage a blessing

News7's Hollani Davis caught up with a 75-year-old widow who calls her reverse mortgage a blessing, and wants to clear up the misconception that it's the government's way of trying to take your home. 

"After you work so long and so hard," said Mary Clark. 

For Clark, the thought of losing or selling the home she's lived in for 44 years was scarier than applying for a reverse mortgage. 

The idea of using home equity to pay off a current mortgage, make home repairs or pay off bills is becoming more popular with older Virginians.  The only major requirement is you have to be at least 62.  The amount you can qualify for depends on your property value and the current interest rate.

Experts say one drawback with the reverse mortgage is that the up front expenses are typically high.  And by drawing out equity, parents aren't leaving much of a legacy for their children.

In Clark's case, she was able to set aside the lump sum from her loan to help with medical and other monthly bills.  That's the peace of mind she's giving her children and herself.

"It's a relief.  A big relief to me," said Clark. 

Whether you decide to take a lump sum or have your money divided out monthly, that's on you.  The best advice from experts though is to look at your financial situation.