Nice article on some of the basics of a Reverse Mortgage. I would like to add that one of the key components of any strategy involving a Reverse Mortgage is balancing and keeping debt in control. Debt, such as mortgage payments and credit cards that get out of control have a tendency to sap a retirees monthly fixed income and throw their retirement plan into turmoil. Once you have achieved balance with your debt and income you can then focus on the savings and investment benefits. For example, the current growth rate that compounds annually on the untapped portion of your available principal limit with a Reverse Mortgage is 6.197 percent. As the article mentioned, this will provide a handsome safety net, diversification, and continued supplementary income options even in the event your property declines in value.
Full Marketwatch article --> http://www.marketwatch.com/story/5-ways-a-reverse-mortgage-can-help-your-retirement-2016-10-26
For more on controlling debt see my blog from March 2016.
George H. Omilan
President-CEO - NMLS# 873983
Jefferson Mortgage Group LLC
Located in Fairfax County - Helping seniors with Reverse Mortgages in Virginia, Maryland, DC and Pennsylvania.
Questions/Comments encouraged.
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