In the current economic downturn, there are eight retirement “realities” that have emerged, writes a U.S. News and World report this week. One among those eight: reverse mortgages.
In a very brief summary of the products, the article states that the loans are worth a look, but require some careful planning as well. U.S. News writes:
Reverse mortgages. Reverse mortgages are worth a look, but it should be a very careful and deliberate one. These loans permit homeowners who are at least 62 to get out from under mortgage payments and remain in their homes. They do so by effectively using the owner’s remaining equity in the home to make loan payments to a reverse mortgage lender. Reverse mortgages have been controversial and have carried high fees. Many experts see their growth as a sure thing, driven by rising numbers of seniors and studies showing big shortfalls in retirement nest eggs. And there is a federally insured program that has provided stability and credibility to the product. But these loans have not taken off and several lenders have left the business. The new federal Consumer Financial Protection Bureau recently issued a cautionary report on reverse mortgages.
Read the full article at USNews.com including the seven other “retirement realities of today.”
Written by Elizabeth Ecker