In the latest in a series of reverse mortgage-focused articles published by the Huffington Post, the publication highlights some of the options that the loans present not just for those in need of cash flow, but as a vehicle for those who are well off.
Citing a recent white paper out of the Edinburg University of Pennsylvania, the publication focuses on the use of a reverse mortgage line of credit as a more “lucrative” option than selling investments.
The loan can also offer tax benefits, the article notes, in that it can serve as an alternative to using tax-deferred savings, and thus better positioning the borrower in a more advantageous tax bracket.
“A variety of options exist with a reverse mortgage that are lucrative regardless your income level or financial comfort during retirement,” the article states. “Make sure that you get expert advice on a reverse mortgage and how it relates to your specific financial situation to more easily arrive at a conclusion…For many retirees that have equity in their homes, a reverse mortgage is a solid option during retirement.”
Written by Elizabeth Ecker