In the previous post, I shared part of an short synopsis that talked about a recent study conducted by the Brookings Institute as to the benefits of using a Reverse loan as part of a retirement plan.
What is crucial to understand is that in the last few years there is more regulation in place to protect the senior and many more Financial Advisors and other professionals are recommending the loan for their clients, but the general public is still holding on to a lot of misunderstandings and old myths about the FHA loan and find it to be confusing.
Here is the remainder of the article.
Brookings: Reverse Mortgage Can Play Viable Role in Retirement
Posted By Cassandra Dowell On August 21, 2014 @ 6:00 pm In News,Reverse Mortgage |
“And those past mistakes have made an impact on Americans’ perception of reverse mortgages. Today, roughly 10% of reverse mortgage borrowers are in default because they can’t afford to pay property taxes, insurance or maintenance fees.
However, recent legislation has put in greater protections for elderly reverse mortgage borrowers.
Other financial retirement tools, such as Social Security, Medicare, insurance-like products and annuities should also be considered when retirement planning, he says.
The reaons for why workers on the cusp of retirement don’t opt for these products is referred to as the “retirement puzzle,” Harris says, adding that low-interest rates and increased health spending are factors.
In fact, data show that a typical married couple on the eve of retirement needed to save roughly $250,000 to have a 90% chance of paying their medical bills.
“Americans are not perfect savers, but retirement security requires much more than just a high personal saving rate,” he says. “Contrary to public sentiment, America has a retirement spending problem, not just a saving one.”