Reverse Mortgage Has Its Good Side

Q: You recently presented a negative view of reverse mortgages. Isn't there a positive view? - M.Q., Panama City, Fla.
There is.
Darryl Hicks of the (not unbiased) National Reverse Mortgage Lenders Association wrote to us, saying: 'You state that the proceeds from a reverse mortgage can be received as a lump sum or regular payments.
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'What you failed to mention is that the most popular option chosen by seniors is to receive funds from a reverse mortgage as a line of credit that they can draw on whenever the need arises.'
He also pointed out that reverse mortgage interest rates are competitive with regular mortgages, and that the home equity loans we suggested aren't perfect, either: 'While a home equity loan may be less costly to obtain, compared with a reverse mortgage, the homeowner is still obligated to make a monthly payment.'
A reverse mortgage 'enables a senior to convert part of the equity in his or her home into tax-free income without having to sell the home, give up title or take on a new monthly mortgage payment.'
Learn more at reversemort gage.org or call (866) 264-4466."


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