New Reverse Mortgage Rules Open Door To A More Secure Retirement

Owning a home has always been part of the American Dream. Therefore it should be no surprise that home equity represents a large portion of the average retiree’s net worth according to the Consumer Financial Protection Bureau statistics. Now, as many Americans near retirement, properly leveraging that home equity will become a crucial part of a secure retirement plan. There are a variety of ways to tap into one’s home equity, such as downsizing, taking a traditional home equity loan, home sharing, entering into a sale leaseback arrangement, or entering into a reverse mortgage. However, each of these strategies is not suitable for every retiree. For instance, the history of reverse mortgages has taught us that they are not the right financial strategy for everyone. In April 2015, new rules have been implemented to help prevent previous miscues often associated with reverse mortgages. While it remains true that entering into a reverse mortgage is not a suitable financial decision for all retirees, for some, a reverse mortgage can be properly utilized to significantly improve retirement income security. This article will examine three different strategic uses of reverse mortgages within a retirement income plan and will illustrate how these strategies are for more than just the cash-poor, house-rich client.

from Forbes – Business
via Abogado Aly Business Consulting

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