Wise Reverse Mortgages Can Be Saving Grace
“If, after considering other housing options, you have decided to remain in an eligible home or to move into a new home, you may want to consider a Home Equity Conversion Mortgage (HECM) – more commonly known as a reverse mortgage – as a source of retirement income.
..Developments of the past decade have made reverse mortgages harder to dismiss outright. The federal government has been refining regulations for its HECM program since 2013 in order to:
- improve the sustainability of the underlying mortgage insurance fund;
- better protect eligible non-borrowing spouses,
- ensure borrowers have sufficient financial resources to continue paying their property taxes, homeowner’s insurance, and home maintenance expenses.
…As the government continues to strengthen the rules and regulations for reverse mortgages and new research continues to pave the way with an agnostic view for their role, reverse mortgages may become much more common in the coming years. Many Americans rely on home equity and Social Security as the two primary available retirement assets.