Reverse mortgages have already been garnering recognition as a viable retirement assets by the financial planning community lately, and now others in the Academic field are echoing similar praises.
In a Q&A from HSH.com, two university professors agreed that reverse mortgages, though they might not be “one-size-fits-all,” should be considered as practical components of retirement planning strategies for older homeowners.
“There’s no ‘one-size-fits-all’ solution for using home equity to assist with retirement,” said Dr. Michael J. McNamara, Ph.D., field distinguished professor of insurance at Washington State University. “For some people, a reverse mortgage makes sense.”
Reverse mortgages may provide the needed relief for retirees that owns their home but do not have the income to make regular payments, making them a “viable product to assist in funding retirement,” said Dr. Harold R. Christensen, Ph.D., professor of economics at Centenary College of Louisiana in the HSH.com article.
Written by Jason Oliva