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reverse mortgage information aarp

Is a Reverse Mortgage the Right Choice for You?— AARP Bulletin

A tale of two reverse mortgage borrowers who had two very different outcomes.

Why This AARP Columnist Changed Her Mind on Reverse Mortgages

JBQ: First, I hope it will help alleviate worries, because if you really don’t know how to parcel out your money in a reasonable way, you’re always going to be afraid you will run out.

My hope with this book is you can figure out what a reasonable lifestyle is—I call that “right-sizing” your life, which is matching your expected income to your expected expenses and seeing how much of your savings you can withdraw every month or every year.

There are two things with this book. The first is the financial part, which is the bedrock on which a comfortable retirement is built. The other is the emotional part.

Let’s say you’re a teacher, lawyer or reporter and then suddenly you don’t have a paycheck anymore. So you not only have to figure out the financial part, but you also have to figure out the emotional part—going from a working person to an engaged private citizen retired. That is something I look ahead for myself. How do you make that transition?

Reverse mortgages: A few benefits, but use caution | The ...

Legal experts still advise caution, but reverse mortgages are showing a mild resurgence both regionally and nationally. As baby boomers age, the trend could grow.

Some seniors consider them when cash poor and house rich, or against medical costs, if they’ve built equity in a home. Still, issues can emerge for them and heirs, so it pays to read the fine print, said Julia Dooris McGann, state assistant attorney general in the consumer protection division.

A reverse mortgage is a type of home loan allowing homeowners who are 62 or older to access the home equity they’ve built up and defer payment of the loan until they die, sell or move out. If approved, homeowners borrowing against equity take the cash in a lump sum or as monthly income, as a line of credit to tap when needed, or a combination.

“The bottom line is, it’s not free money,” McGann said. She spoke recently in Spokane to the group Vulnerable Adult Links United.

“There are some circumstances under which reverse mortgages make sense, but they’re rare,” she said. “It really depends on the need and their circumstances. I’d urge caution whenever anyone is considering a reverse mortgage, and it’s well worth a second look before getting into them.”