There are many uses for reverse mortgages, but there are still some misunderstandings about them, writes Bankrate.com in a recent article.
Bankrate delves into the topic with an interview with National Reverse Mortgage Lenders Association President and CEO Peter Bell, who shares his personal experience with aging parents as it relates to the topic.
Bell’s parents, who are in their 90s, live in a Continuing Care Retirement Community in Florida, which allows them to pay for care costs over time after placing a large deposit on the cost of their housing and care.
But not all aging Americans are able to afford such accommodations, Bankrate writes, citing some different uses of reverse mortgages such as paying off a conventional mortgage, for home remodels, and as a standby line of credit.
“[Bell] believes that a lot of people who are critical of reverse mortgages don’t understand the newer, government-regulated forms, including reverse mortgages that allow people to manage their cash flow by paying back what they owe and re-borrowing it down the road,” Bankrate writes.
“We offer a product that some people love to hate, but when we talk to a lot of people who are negative, we find out that they are misinformed,” Bell tells the publication.
One point of misinformation in particular is the topic of heirs and their right to the home, the article notes.
Written by Elizabeth Ecker