Wise Reverse Mortgages Can Be the Saving Grace of Unprepared Retirees
An excellent article by Dr. Wade Pfau was published by Forbes.com this week, “Wise Reverse Mortgages Can Be the Saving Grace of Unprepared Retirees.” See a preview below and click the read more link at the bottom to see the article in it’s entirety:
“If, after considering other housing options, you have decided to remain in an eligible home or to move into a new home, you may want to consider a Home Equity Conversion Mortgage (HECM) – more commonly known as a reverse mortgage – as a source of retirement income.
The vast majority of reverse mortgages in the United States are HECM reverse mortgages, which are regulated and insured through the federal government by the Department of Housing and Urban Development (HUD) and the Federal Housing Authority (FHA). Other options outside of the federal program pop up occasionally, like jumbo reverse mortgages that exceed federal limits.
The HECM program includes both fixed rate and variable rate loans, though fixed rate loans are uncommon and require the entire allowed credit to be taken as an initial lump-sum amount. We will not concern ourselves with fixed rate loans, only variable rate.
Any discussion of reverse mortgages as a retirement income tool has typically focused on real or perceived negatives related to traditionally high costs and potentially inappropriate uses for these funds. These conversations often include misguided ideas about the homeowner losing the title to their home and hyperbole about the American Dream becoming the American Nightmare. Read More…”
If you would like to view additional articles and studies that have been conducted on the reverse mortgage program, please visit our Learning Center or call us today at 1-888-340-0305!
“Wise reverse mortgages can be the saving grace of unprepared retirees” is a statement that we agree with wholeheartedly! Please consider your options and let us help you investigate how a reverse mortgage could benefit your financial situation.