Several prominent financial planners, researchers and academicians have touted the benefits of reverse mortgages in a variety of consumer-facing media outlets, while other professionals such as Realtors have been less outspoken on the product, that is, until a recent NBC News segment this week.
In a real estate segment featured on Arizona’s Channel 12 NBC News, Holly Henbest, a Realtor with The Henbest Team in Scottsdale, Ariz., discussed what consumers need to know about reverse mortgages, and how these loans can be an effective solution for retirees planing to age in place and increase cash flow.
“They [reverse mortgages] are starting to gain a little bit more notice or popularity, if you will, because we’ve seen the equity in homes start to rise over the last year with prices going up,” Henbest said. “If you’re over the age of 62 and you have equity, or have paid off your home and your’e looking for a way to sustain your livelihood with additional income, this can be a great avenue to take.”
Although the segment repeatedly refers to loan proceeds as “income,” for the most part, the overall tone of the piece conveys a positive message for reverse mortgages.
“Every situation is different,” Henbest said. “This isn’t going to be the best loan for everybody, but depending on your situation, if you want to stay in your home, you’re over the age of 62, you have equity—this [reverse mortgage] could be a way to do it.”
Surprisingly enough, Henbest did not mention using a reverse mortgage to purchase a home. See what other reverse mortgage talking points were discussed in the NBC News segment.
Written by Jason Oliva