The Listen to Lawrence Letter: Reverse Mortgages

February 6, 2023
January 12, 2023 • Volume 4 Issue 105
Dear Clients and Friends,
Any interest in a reverse mortgage?


My husband and I are clients and are interested in reading Lawrence’s thoughts on reverse mortgages. Thank you for your attention.


You may be surprised to find out that I am neutral on the subject of reverse mortgages. I am not necessarily for them or against them. To me, a reverse mortgage is another tool in the toolshed, like a hammer. I don’t like or dislike hammers.  However, you would not pick up a hammer to cut down a tree but you might if you were hanging a picture.

A reverse mortgage is a mortgage that you can get on your home today, but you do not have to pay it back until you sell the property, during life, or after your death. Interest will accrue until you pay it back. It is usually very expensive, and there are many closing costs associated with this mortgage, but they are wrapped up in the amount of the loan. Certainly, when you pay it back upon your death your children will receive less…but do you care?

Because it is expensive, I am not quick to advise a client to get a reverse mortgage. If you have other money, I usually prefer you spend that other money before you tap the equity in your home. But if you really need the money in your house but want to continue living in your house, and cannot afford traditional monthly mortgage payments, then why not consider a reverse mortgage? It is a tool that is available to enable you to support a lifestyle that you might not otherwise be able to afford.

Assume you live on a fixed income and you spend that income every month on your basic expenses. Assume also that you do not have many other assets besides your house. Then assume that your roof is leaking, or you want to go to Florida for the winter, or need assistance in your home. Tapping the equity in your house is an option that you should seriously consider to live the life you want or need.

A reverse mortgage is a tool. Is it right for you? Maybe, maybe not!

I hope this helps! Please forward this email to your friends and relatives to share these informative answers to some very commonly asked questions.


And, if anyone you know would like to receive this

Listen to Lawrence Letter, just have them email me at and I’ll add them to the list!


As always, please send me your questions. If you are thinking about it, others are probably too, so my answers will no doubt help you and many others.

Let’s stay connected.

Stay safe!

Until next time...peace, health and happiness. Lawrence Eric Davidow