QUESTIONS?

CALL US: 703-319-2198


How to use a reverse mortgage to protect your retirement income. Marketwatch Article Comment.

Published on Nov 19, 2015 | Reverse Mortgage Retirement Planning supplemental retirement income HECM Reverse Mortgage Government insured mortgage
How to use a reverse mortgage to protect your retirement income.  Marketwatch Article Comment.
How to use a reverse mortgage to protect your retirement income.  Marketwatch Article Comment.

I agree that most people should consider establishing a HECM Reverse Mortgage credit line as early in life as possible. However, although I would support the idea of using a reverse credit line to protect retirement income, I am not convinced that it has practical application due to its complexity.  Having said that, I am familiar with the Sacks & Sacks research on this subject from 2012.  I have licensed it for redistribution, but again and again, I come back to what is realistic for my average 76 year old client for a Reverse Mortgage.  Simplicity and security is what they need.  The portfolio management angle is not where I see the real benefit for retirees and seniors.  To touch on an important point in the article referencing, “the potential ability for a client to spend more than their home value”.  This relates to the growth factor and funding options like the tenured annuity-like option.  These key areas of benefit, along with the fact that it is a non-recourse loan with preferential estate treatment, are often overlooked and buried in skepticism towards the Reverse Mortgage program versus a will to understand their significance. 

http://www.marketwatch.com/story/how-to-use-a-reverse-mortgage-to-protect-your-retirement-income-2015-11-11?cb=logged0.5325293045637436

Recent Posts

Blog Tags

Reverse Mortgage HECM Reverse Mortgage Retirement Planning supplemental retirement income Seniors Retirement security Short Sales Financial Planning Traditional Mortgage Home Care solutions for underwater properties Age in Place lifetime income with a Reverse Jumbo Reverse Mortgage Government insured mortgage Social Security HECM for Purchase Long Term Care Retirement income insecurity home equity access forgiven mortgage debt Specialized Forward Mortgages Mortgage Loan Process Eligibility for Reverse Mortgage Debt Mitigation Non QM private label reverse mortgage reverse credit line mortgage Investor Loans mortgage debt forgiveness act Real Estate Investment Loans foreclosure self-employed borrower VA LOAN FHA HUD Annuity Loan modification No Doc Investor Loans cashflow bank statement loan 55+ Reverse to Purchase Mortgage Financial Assessments VA Low Score Jefferson Mortgage Group HECM Changes Interest Rates investor financing Inflation Medicare Mortgage Rates Senior Advocate Real Estate Market Sandwich Generation Jumbo Reverse Second Trust mortgage debt Reverse Mortgage Eligibility manual underwrite Construction Loan Fed Real Estate Economy HELOC QM Lending Limit increase DSCR 2025 changes Non-recourse loan modify your loan with your lender mortgage debt relief act Housing Market Mortgage Deliquency Fiscal Cliff Asset Based Mortgage HECM to Purchase OBBBA Blanket Loan Home improvements Diversification Low Credit Score Estate Plan Senior Care Jumbo Mortgage Loan Rentership Credit Score down to 500 Second Trust Gray Divorce bankruptcy MIP 2023 changes growth factor downsizing Hard Money Loan Trump Principal Limit Factor Commercial Real Estate 2021 Changes Debt Treasury DSCR Asset Qualifer FINRA Housing Prices Business Cash-flow Property-based loan Residual Income ATR Rule assisted living LLC Seller Contribution Second Trust Prequalification Unrestricted Approval Non-Qualifying Loan success story High-Value Homes LESA occupancy requirements