Tag: Reverse Mortgage

Not Your Father’s Reverse Mortgage

Last year I was meeting with a baby boomer client couple in the suburbs of Chicago. They were in their early 60s, and we were discussing “What’s Next?” for them as they transition from vocation to avocation (aka semi-retirement yet engaged in life). They mentioned they might like to relocate to the Carolinas, where the cost of living is lower, the climate’s better, and to be closer to family. I advised them to establish a standby expanding line of credit which is a Home Equity Conversion Mortgage (HECM).  This could give them tax free cash on their home equity in the event they found a property in the Carolinas sooner than later and needed to act fast to seize the opportunity. 

HECM: The Expanding Line of Credit

We typically advise clients to pay down debt, including the mortgage on their primary residence, as they approach and enter retirement. Even so, we encourage them to take out a home equity line of credit for unexpected contingencies, as a ‘just in case’ option.

5 Strategies for the New Reverse Mortgage

The Harvard University Center for Housing found that 40 percent of individuals aged 65 and over now have a mortgage—twice as many as in 1992. That’s an awful lot of people financing their homes at a time in their lives when they may have no income coming in. Would a reverse mortgage be smarter?

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