“While we get hands-on experience with other borrowing techniques like student loans, credit cards, and traditional mortgages as we move through life, we don’t get the same hands-on experience with reverse mortgages,” he said.
How can it help homeowners?
To understand the benefits of reverse mortgages, Ruben urged homeowners to do research on the basics of the concept, including eligibility requirements and payment conditions.
He said a reverse mortgage could be used eliminate existing monthly mortgage payments to provide additional cash flow. It could also be a good option for homeowners looking to downsize and supplement their retirement savings.
“Your financial advisor and lender can help answer any questions you have and dispel the stigma of reverse mortgages being a ‘last resort,’” Ruben added. “They will also be able to evaluate if one is right for your situation and help weigh the pros and cons.”
Hopkins also elaborated on the strategic use of home equity in retirement to support cash flow, cover long-term care costs, and provide retirement income, among other benefits.
Source: mpamag.com