As the divorce rate rises among older generations, reverse mortgages are finding their place as a strategy divorcees can use to move forward financially, The Denver Post reports.
Though 62-year-old Judy has other savings and investments for retirement, her biggest concern is making her money stretch for at least 30 years. So one of the first things she should look into is a reverse mortgage, says Pam Dumonceau, a Denver Post columnist, who has 21 years of experience in financial planning.
A reverse mortgage would offer Judy the opportunity to supplement her income by converting part of her home’s equity into cash, without having to sell her home. This way, she can stay in her home and remain close to family and friends.
“Judy is extremely hesitant about this suggestion, but I recommend that she research it and strongly consider the financial relief it can provide,” Dumonceau says.
Previously, Forbes has suggested reverse mortgages can be financially useful tools, especially for divorcing women. For those divorcing at age 62 and older, reverse mortgages can represent a new strategy for making divorce settlements last as long as possible.
Read the full Denver Post article here.
Written by Emily Study