Home equity loans are “a product of the past,” writes The Huffington Post in a recent article, which urges home owners age 62 and older to instead consider a reverse mortgage.
“There are plenty of reasons to secure a reverse mortgage,” The Huffington Post writes. “People can use them to buy a second home. Some may choose to retire early. Others may want to start a business. They give some people a chance to travel or do their bucket lists before they get too old. For many others, it’s the money in the bank/peace of mind option that’s attractive to them.”
Home equity loans are declining in popularity because they’re income-based loans, which means as income decreases it becomes tougher to qualify for loans.
The Huffington Post offers these five reasons to consider a reverse mortgage: buy a second home, retire early, pursue a new career, travel and peace of mind.
Taking out a reverse mortgage as a line of credit can also help borrowers when financial hardships occur, The Huffington Post says, noting that a line of credit grows over time.
“Let’s say we get Alzheimer’s or have a stroke and need assisted living,” The Huffington Post says. “That’s the worst time in your life to worry about how you’re able to pay for it. You have so much going on, and everybody is stressed. You don’t want to make financial decision in a crisis. Yes, a reverse mortgage gives you peace of mind.”
Written by Cassandra Dowell