With all of the changes taken into consideration over the last twelve months, Reverse loans are gradually becoming a very acceptable option to extend retirement savings and as a tool for financial planning.
Costs are down and options for the consumer have increased, including a new Jumbo loan for those properties that are considered to be “high value” and need more funds than the traditional HECM can provide to the borrower.
A writer with the New York Times newspaper, recently had his article published about why everyone needs to know more about the loan and regardless of what they may think about them ( which is generally incorrect), they are here to stay and they will have a positive effect moving forward for people who wish to stay in their homes and preserve what retirement funds they do happen to have and to cover the medical expenses of aging.
I will re post the summary article in two parts.
NY Times: Reverse Mortgage Time is Coming
Posted By Elizabeth Ecker On September 28, 2014 @ 11:30 am In News,Reverse Mortgage | No Comments
“The time is coming for reverse mortgage loans, like it or not, writes the New York Times’ Ron Lieber in an article [1] this week.
“It’s been fascinating to watch the reverse mortgage industry grow up — or try to — in recent years,” he says, noting reverse mortgage naysayers who have written in response to past New York Times articles on the products.
But reverse mortgages will, and must, play a role in the retirement of many, Lieber writes, even if those many are not the typical readers of the publication for which he writes.”
“These are easy [critiques to make] when you have enough savings or pension and Social Security income to get by,” he says. “But given that older Americans’ homes are worth, on average, more than their other combined savings, there is a begrudging inevitability about reverse mortgages. As more people enter retirement in the coming decades with modest savings and no private pension, they’re going to need some of that home equity back during their increasingly long lives.”
The rest of the summary article will be in my next post.