The National Council on Aging is a federally approved counselor on the topic of reverse mortgages. It has created a useful guide for older homeowners entitled, "Use Your Home to Stay at Home." For more information and to have questions answered, visit NCOA's website.
Most seniors would prefer to remain in their homes, which is usually also their largest asset. However, since many people are living far beyond the life expectancy for which they planned (or did not plan in some instances), remaining in the home is becoming a financial burden, especially for elderly widows. A reverse mortgage is sometimes a way for a senior to stay in his or her home, tapping into the value of the real estate to give the homeowner the ability to pay the real estate taxes, make necessary repairs, pay off debt, or pay for long term…
The average age of reverse mortgage borrowers is dropping, according to a recent report issued by MetLife. As many are aware, reverse mortgages come with risks, and likely more so for younger borrowers. Reverse mortgages allow homeowners who are at least 62 years of age to obtain a line of credit linked to their primary residence. The homeowner receives the ability to draw on this line of credit for the balance of their ownership of the residence, based largely on the value of the house, age of the borrower, and current interest rates. The borrow does not have to take…
For some seniors, a reverse mortgage represents a viable option for funding long term health care. Now don’t confuse a reverse mortgage for a home equity loan because there is a major difference. While a home equity loan requires you to pay back the cash you receive with interest, a reverse mortgage does not. Basically it allows you to enjoy the value of your home now while still being able to live in it and not make any payments. And in the case of a senior in need of assistance funding long term care, the cash advance can be a…
Nursing homes are very expensive, ranging from $7,000 to $12,000 or more a month.
The suspicion should be nothing new, but Consumers Union and the LA Times recently released warnings about reverse mortgages, and it’s worthwhile to repeat them here. The biggest problem with reverse mortgages is that they can be made to appear too attractive to retired senior citizens, when in fact they can be quite risky. Seniors should be wary of reverse mortgages, rather than be misled by them. Reverse mortgages allow seniors to tap into their home equity for cash or a line of credit, often with the claim that the money needn’t be paid back until the borrower dies….
There are a number of questions, facts and circumstances, to be investigated, not just get a list, and, slowly, hire someone.
Frederick, MD 
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