CBS Money Watch columnist Jane Bryant Quinn tells readers that “if you’ve been snubbing a reverse mortgage, or counseling your elderly parents against it, take another look. These notoriously expensive loans are now on sale for less.”
Quinn says that while the loans get plenty of press about being mis-sold, at the right time, reverse mortgages can help those living a pinched life of living on Social Security and measly certificates of deposit. Specifically, Quinn encourages seniors to take a look at the HECM Saver to fill short term needs.
“A Saver credit line is a good way of improving your cash flow while you’re waiting to sell your house. When the housing market improves, you can repay your loan and downsize into something smaller. A reverse mortgage could also help you hold off foreclosure while you find another place to live.”
Peter Bell, President of the National Reverse Mortgage Lender Association talks to her about the new HECM Saver too.