The New York Times published a positive article that highlights how reverse mortgages should no longer be characterized as a loan of last resort for house rich, cash poor retirees, but rather a strategic option for households to plan for a more financially secure retirement.
Reporter Susan Garland says homeowners in their 60s and early 70s could use cash from a reverse mortgage to protect investment portfolios during market downturns, to delay claiming Social Security benefits or to pay large medical bills.
“The best use of this tool is to provide and supplement income during retirement,” says Craig Lemoine, the director of the financial planning program at the University of Illinois, Urbana-Champaign. “A younger retiree can stay in the house while turning equity into an income stream.”
To help illustrate her point, Garland interviewed 75-year-old Marjorie Fox whose husband passed away in 2016. She waited two years to retire as a financial planner and three to sell their house and buy a lakeside townhome in Reston, Va. For added protection, she took out a reverse mortgage on her new home. Read the full article.
Reverse Mortgages Are No Longer Just for Homeowners Short on Cash
