Recently Brian O’Connell published in The Street about what a Reverse Mortgage Does!
A reverse mortgage is an increasingly attractive proposition for older Americans who may be low on cash, need to supplement retirement income, and want to use their home equity to remain in the house they own.
Reverse mortgages are loans that enable U.S. homeowners over the age of 62 to cash in on the equity built up in their home, via a reverse mortgage lender.
That’s a tempting opportunity in an age where millions of U.S. seniors are struggling to save enough money for retirement. Data from Northwest Mutual shows that 67% of Americans believe they will outlive their retirement savings and 21% of American have saved zero dollars for retirement.
Even so, there are some risks involved in cutting a deal on a reverse mortgage (otherwise known as a home equity conversion mortgage.) Such mortgages are supervised by the U.S. Federal Housing Administration, an arm of the Department of Housing and Urban Development, so there is some level of regulatory scrutiny.