Upon a study released last week indicating that reverse mortgage borrowers are getting younger, a Reuters article presents many different takes on reverse mortgages and the different angles that can be taken on them.
It’s a strategy, but is it a smart one? the article asks.
It can fill gaps, the article notes, in providing the example of a couple delaying the husband’s Social Security draw, or a couple who expects to downsize and sell the home eventually, and can pay the reverse mortgage off while selling the home.
The article cautions that there are still fees involved, even though there is now the lower-cost Saver option. The no-recourse aspect, however, is appealing and could make it a strategic opportunity for some younger borrowers, Reuters points out.
Another downside, the article points out, is not leaving the house to the family or heirs. An alternative could be doing a reverse mortgage within the family, rather than through an outside lender, Reuters says.
View the original article.
Written by Elizabeth Ecker