This story reflects the real experience of a recent Maine client, who chose to remain anonymous and requested a pseudonym.

After years of experiencing the ups and downs of small business ownership and dealing with credit card debt that had been holding them back, John and Jane, two local Maine residents, decided it was time to focus on their financial goals for retirement.

With a clear objective and a proactive mindset, they explored solutions that matched their lifestyle and long-term plans. They partnered with CEI’s free business advising program to confirm their own research into the potential benefits of a reverse mortgage.

Q&A as told to CEI by “John” in his own words.

Can you tell us a little bit about why you decided to consider a reverse mortgage in the first place?

We bought our house for cash eight years ago, and we watched it double in value in only that period of time. We have slow periods with my shop, and we have Social Security, but we came to Maine with a bunch of credit card debt. We decided this [reverse mortgage] would be a good way to reduce it and give ourselves some breathing room when the shop is slow and there’s no extra money.

When the big seasons come, like Thanksgiving and Christmas, we get a lot of cash in from the business. But we are tired of these ups and downs. Getting rid of a bunch of the credit card debt puts us in a much more secure position, and there are no monthly payments. So there’s all that money sitting there earning interest, while we don’t use it. That’s the beauty of the reverse mortgage – it gives you security.

Did you have any concerns or misconceptions about reverse mortgages before you got counseling?

To tell you the truth, we’re heavy users of ChatGPT. I have a pro ChatGPT which answered almost all the questions ahead of time. We weren’t confused about any of it, from having Mechelle [CEI loan officer] take us through it and explain the process: what happens, how it happens, and then giving us a referral to Longbridge Financial, LLC.

Even though we talked to two other people, we really liked Longbridge, and the agent that we dealt with was just fantastic. It went really smoothly with him, so we’re really happy about that.

Can you share how you found out about CEI’s counseling?

Well, it turns out you’re the only ones in the state. And you are free, which is also good.

It’s a great thing, and when we went through this with Mechelle, we were pleasantly pleased that a nonprofit would have such confident people working for it and really dedicated. She seemed very committed to making sure that people go through this comfortably and are not deceived or misguided.

The loan company should be very happy that they have somebody like you guys [CEI] ahead of the deal because the people come in with the awareness of what’s supposed to happen. Rather than being all paranoid and confused. We’ve had a few mortgages and 2nd mortgages in our lives, and those people are not always easy to deal with or trustworthy.

How did the counseling help you feel more confident in the decision you’re making?

Well, everything that Mechelle was telling us was syncing up with our own research. Then we met the people, the agents – but it was mostly Shay [Longbridge agent]. When we met him, it all synced up like everything Mechelle said would happen, and everything we researched that would happen. It was very smooth.

We’re not the average senior citizens, and we’re very high-tech and very active. So, it’s got to be tough in my age group for senior citizens; some people get really feeble by this time. Their kids are coming and saying, “When are you going to sell the house and move to a nursing home…” and stuff like that.

I could see how more mainstream seniors with heirs and children bugging them, and maybe infirmity, could be a tough thing when they’re going through something like this. It’s not something you want to go through when you’re not all there. Or at least have an advocate in your family that will ride sidesaddle for the process.

Can you say more about how reverse mortgages impacted your financial situation so far? How are things feeling monthly now that you have this solution?

My wife is making one of the big payments tomorrow to one of our big credit card debts. After that payment the monthly is going to drop quite a bit, that’s a long time coming. We really went through eight years of paying them interest. That is just absurd, the amount of interest we were paying them and what it left us after we made all those payments.

This [reverse mortgage] sort of fits the bill. We’re not atypical; a lot of seniors are going into their golden years with a lot of credit card debt. So this is your market right here: People who have the equity in their homes, who have a lot of credit card debt. Those are the ones that need reverse mortgages.

Do you feel like the counseling helped you avoid any surprises or pitfalls in particular?

Well, I tell you the best thing that you could have done for us was given us a list of vetted agents. We did due diligence, we called them, we chose the one we liked. Longbridge just turned out to be a sound organization. It had all the right look and feel to us.

Mechelle gave us information on some things that we didn’t come across, like the fact that you get interest on the money that’s not been taken. The idea is to make a plan and maybe a year or two out to travel, and take the money from the interest and use it to do that trip. Because we’ve never been to France, it’s like a bucket list vacation.

What would you say to someone who’s on the fence about doing a reverse mortgage?

Well, first I want to hear what their concerns are because being on the fence is a very broad point of view. I mean, what’s bothering you about it? I don’t really have any fears I could talk to, but I guess what most people’s concern is going to be is if there is some way that this Mortgage company is going to screw around with their money and lose it, and it won’t be available.

I figured out that with this closing, they were able to take the 250K out of our account and stick it somewhere. So if we want some, they give it to us. But they’re actually holding that money in some kind of an Instrument that gets interest, and they do the accounting from it.  That is our equity, that is our nest egg.

If, for some reason, they were to go belly up and lose the money, we’re out of luck. That’s probably one of the biggest concerns anyone would have. A lot of people wouldn’t trust it for that reason alone, but it’s HUD and FDIC-backed.

John and Jane’s experience shows what can happen when people take the time to understand their options and ask for support. Their success wasn’t just about choosing a reverse mortgage. It was about making informed decisions and staying focused on their goals. Their story reflects how many seniors today are thinking differently about financial security in retirement.

At CEI, we help each client find the solution that fits their life. Whether you are working through debt, planning for retirement, or looking for guidance with your business, our free business advising team is here to listen, offer support, and help you move forward with confidence.