A reverse mortgage can be a viable tool for retirees who are facing daunting retirement expenses, writes U.S. News and World Report contributor Rachel Hartman in an article published Tuesday. However, there are considerations for taking out a reverse mortgage as a retirement strategy, she writes.
Titled “8 Factors Retirees Should Consider Before Getting a Reverse Mortgage,” the article spells out eight reverse mortgage considerations for prospective borrowers ranging from the fees that borrowers can expect to the types of payment options that are available.
“Understand what it entails,” is one factor outlined, while payment options, home equity amount, fees, long-term thinking, family considerations, loan purpose, and other options account for the rest.
The article presents the reverse mortgage neither as a good nor bad strategy, but outlines the things retirees should think about.
“To decide what is the best choice for them, homeowners should consider their personal situation and how they will use the proceeds from a reverse mortgage,” Bruce Bufe, senior vice president of residential lending for Draper and Kramer Mortgage Corp., tells U.S. News. “For example, some homeowners are looking for a supplement to monthly income, while others might need to cover a large one-time expense or simply want to have access to funds they can tap into in an emergency.”
Read the full article at U.S. News and World Report.
Written by Elizabeth Ecker