This week The Boston Channel journalist Leah Betancourt writes about how reverse mortgages offer seniors a way to solve the house-rich, cash-poor dilemma without risk to their heirs. The article has commentary from people like Bob Walters, chief economist of Quicken Loans who said “It’s a wonderful product for people struggling with bills. It gives people a lifeline.”
While the costs of reverse mortgages usually take center stage in any article, once the senior understands how the loan works, reverse mortgages typically provide the most money at the lowest cost. “The total costs of the loan are spread out over time and the costs are much lower. Charges become lower if you spread them out over time,” said Browyn Belling, the AARP Foundation’s reverse mortgage. Yes, a representative from AARP is actually supporting reverse mortgages… it’s about time right?
Belling stresses that front-end education about the terms, fees and options can be vital in deciding if it’s the best option and is required for HECMs. “You need to do a lot of due diligence of what the costs are to decide whether to apply. Then there aren’t any surprises about fees or charges,” Belling said.
Overall, it’s a great article and it’s the first time I’ve seen the TALC discussed in while. To read a copy of the article click the link below.