The short answer is “yes”, but “no”.

One of the concerns in dealing with senior homeowners who are getting a reverse mortgage is whether they can accurately assess this decision.  Disregarding those with dementia or Alzheimer’s, some will still worry that most seniors, by virtue of being “elderly”, may not fully know what they are doing when getting a reverse mortgage.  In working with seniors who are getting reverse mortgages, I have found their decision-making skills to be as good as younger people.  A recent Canadian study reveals some interesting information on this topic.

Younger brains are more adept at certain functions, like memorization, and their brains are recognized as being “quicker” than older minds.  However, it turns out that this is a “Tortise and Hare” situation.  Younger people tend to reach decisions faster and use multiple areas of the brain in doing so, even if these regions are not especially relevant or  helpful to the decision at hand.  Decisions made more quickly, however, are more likely to be incorrect.  On the other hand, according to this study, older people tend to use only those areas of the brain that related to the decision, and while they arrived at an answer more slowly, they were less likely to miss a question.

My experience with reverse mortgage borrowers confirms this.  It might take a senior a while to understand the nuances of a reverse mortgage, but once they do, they seem to be able to draw on wisdom to make the best decision.

 

Better Business Bureau - Accredited Business
Equal Housing Opportunity logo
Better Business Bureau - Accredited Business
Equal Housing Opportunity logo