Reverse Mortgage Blog

Is a reverse mortgage right for you? CNBC Article Response

March 23rd, 2016 | supplemental retirement income, HECM Reverse Mortgage, Reverse Mortgage, Retirement Planning, Financial Planning

A Reverse Mortgage provides a unique advantage to retirees with home equity seeking supplementary income.  In addition to additional income it also provides the opportunity to pay off existing mortgages and home equity lines to free up additional monthly cash for living expenses.  A homeowner with significant home equity can accomplish this and also create a unique home equity line for emergencies where the untapped available credit grows annually as the homeowner ages in place. 

When people talk about the negatives of the program, they are always quick to note that if you don’t pay your taxes and insurance you can lose your home.  This is absolutely true, but let’s put it into context.  Today, whether you have a Reverse Mortgage or no mortgage, if you don’t pay your required real estate taxes the state will hit you will a tax lien and if you don’t pay your homeowner's insurance and you suffer a loss it could be devastating.  To imply that there is some new hidden boogie man in the details with a Reverse Mortgage is misleading.  It’s a terrific tool but you do need to understand it and determine if it can help you meet your objectives in retirement.  Always consider the alternatives and the related costs and risk associated with the forward mortgage type loans in retirement.  A government insured Reverse Mortgage should be used as a long term vehicle that can help you achieve a more secure retirement.

Click here for the full CNBC Article - titled "Is a reverse mortgage right for you?"

 

George H. Omilan
President-CEO - NMLS# 873983
Jefferson Mortgage Group LLC
Helping seniors with Reverse Mortgages in Virginia, Maryland, DC and Pennsylvania.

Questions/Comments encouraged.

 

 

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Jefferson Mortgage Group LLC

2536 Leeds Rd.
Oakton, Virginia 22124
703-319-2198
FAX: 703-773-6946
info@jeffersonmortgage.com
NMLS: 935554

Located in Fairfax County, Virginia. Serving all of Virginia, Maryland, DC & Pennsylvania. 

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Jefferson Mortgage Group LLC is licensed in Virginia, Maryland, DC & Pennslvania.
Virginia State Corporation Commission License Number MC-5659 and the Pennsylvania Department of Banking & Securities #46259 
The DC Department of Insurance, Securities, and Banking License #MLB935554
Maryland DLLR License #21586

An Equal Housing Lender

By refinancing the consumer's existing loan, the consumer's total finance charges may be higher over the life of the loan.

This material is not from HUD or FHA and has not been approved by HUD or any government agency.