Good article on Philly.com. I agree that a normalization of interest rates will definitely adversely affect procrastinating borrowers with reverse mortgages. They will look back and regret not taking advantage of the program when internal rates were at historical lows. However, I don’t see that as the biggest threat to the procrastinating clan, regardless of age. The biggest threat I see is a crisis after retirement. This could be financial or health related, either one that grows out of the absence of a plan or one that overwhelms an existing plan. The smart retired homeowner will seek out a HECM reverse mortgage to neutralize debt today, but more importantly to provide an insurance back stop for their future that they control. Personal financial control adds to security in retirement. Home equity can be an important tool that can help provide this security for the future. There is no race to use it, but a reverse mortgage is senior friendly and should be considered for your retirement plan.
Read full article here: Deciding when to take a reverse mortgage.
George H. Omilan
President-CEO - NMLS# 873983
Jefferson Mortgage Group LLC
Helping seniors with Reverse Mortgages in Virginia, Maryland, DC and Pennsylvania.