A reverse mortgage is a choice worth knowing about, writes syndicated columnist Scott Burns in The Dallas Morning News this week.
Burns decided to address the topic after seeing an advertisement for the reverse mortgage for purchase product, he writes. To find out more, he met with a Tampa, Florida-based originator from Retirement Funding Solutions, Chris Bruser.
“Basically, the purchase money reverse mortgage is a wrinkle on a conventional reverse mortgage,” Burns writes. “These Home Equity Conversion Mortgages may allow you to pay off an existing mortgage on a home you already own and have an additional line of credit to cover other expenses.”
The column discusses typical uses of reverse mortgages, and some of the details about rules and qualifications. With Bruser’s input, Burns covers the recent trend toward the use of reverse mortgages as financial planning tools.
“People with a glass-half-empty view of the world imagine losing all of their equity,” he writes. “People with a glass-half-full view consider the benefit of having a limited loss in a risky universe. The most they can lose is their home equity.”
Written by Elizabeth Ecker