
Retire Right: Why reverse mortgages had a bad reputation
Over the last 35 years, there have been dozens of changes and improvements to make reverse mortgages better and safer than they had been historically.
Over the last 35 years, there have been dozens of changes and improvements to make reverse mortgages better and safer than they had been historically.
What did life look like back then? How much did a gallon of gas cost? How much did a dozen eggs cost? How much did a bottle of soda cost? How much did homes cost? Now visualize your retirement. Does it look the same? What’s different?
Many of us have deeply rooted beliefs, which date back to the Great Depression, that we must pay off our mortgage. Does this belief still hold true today? Is paying off your mortgage the best investment strategy given all the new products and solutions available?
In general, I believe there are three primary categories of the ways that homeowners use a reverse mortgage: needs based, lifestyle based and planning based.
I have had clients in the past tell me that reverse mortgages are confusing, and I do not disagree, they certainly can be confusing.