Dollars and Sense: The Facts of Reverse Mortgages: Seniors Enhance Their Financial Stability

Jack Cawthon

A Reverse Mortgage can offer seniors an option to age-in-place at home. They are federally insured, with the rules and guidelines all set by the FHA and HUD. And, it may surprise you to learn that this program began in 1988 under Ronald Reagan’s administration, with the express purpose of helping seniors stay in their homes.

As your local reverse mortgage professional, my 30 years in the business, with the last 13 working exclusively with Reverse Mortgages, gives me the knowledge and experience to clearly explain the benefits. I will tell you up front, this program is not for everyone, but then for others it can be a life changing event. We offer a stress-free review of the facts so you can decide what is best for you. No hassle.

Through the years I have helped those that faced the sudden loss of family income. Often after the passing of a spouse.

I’ve helped others plan ahead for a quicker and more comfortable retirement by establishing a standby ready source of cash or income stream.

And I’ve helped those wanting tax free cash from the equity of their home for personal reasons (a special purchase, gifts to their children, or gifts to their church, etc.).

In all of these situations there are no required monthly payments. That means the mortgage and/or debts get paid, and the cash that was taken from the income stream or the line of credit are all obtained without a monthly mortgage payment for life. However, don’t be confused, nothing is free, the debt is simply accruing. We can talk about that in detail.

The thought that a reverse mortgage is just for those struggling with financial difficulties is just not true. While it is common for us to pay off an existing mortgage or advance immediate cash to pay bills, it is just as common for us to set up a line of credit or income stream on a home with no existing mortgage.

There is a difference on how you can obtain a reverse mortgage. The movie stars on TV hawking reverse mortgages will give you their spiel on the phone and offer you their program. If you are comfortable with that, then go for it. But we don’t think that’s the best process and we don’t do it that way.

We believe that in order to make an informed decision, you need all the facts and a ten-minute phone call just doesn’t do that.

We will discuss the basics with you over the phone to see if you qualify, then we prefer to follow that up with a sit-down, face to face discussion with you and your advisors about all of the various options, all in the comfort of your home. It just works better that way. We are seniors as well and we strictly practice social distancing.

Once you’ve made the decision to go forward, we will visit you again to complete the application. You deal directly with us throughout the entire process, all in the comfort of your home.

Please call me; I look forward to discussing the various options that might work for you.

Jack Cawthon is a Denton-area mortgage broker (and native Texan) with more than three decades in the mortgage business. For more information, call Jack at 940-289-3100 or visit his website at