As expected I was quoted in an article on reverse mortgages on the U.S. News and World Report website! Here’s the link:
Here is an excerpt.
How to Buy a Retirement Home With a Reverse Mortgage
Before launching into this kind of mortgage, ask yourself how long you’ll stay in the home and if you can cover the fees.
Many older people know about using a reverse mortgage to tap their home equity and use the money to stay in a longtime home. But it’s also possible to use a reverse mortgage to buy a home. This can be helpful to people who want to relocate and can’t afford mortgage payments in retirement or are unable to qualify for a conventional mortgage. It may also be a useful financial tool for delaying Social Security or conserving cash.
“Very few people actually use the reverse to buy a home, but it’s a great tool,” says Sylvia Gutierrez, a mortgage professional in Miami and the author of “Mortgage Matters: Demystifying the Loan Approval Maze.” “They’re not tied to that monthly payment. Many people will benefit from that.”
With a reverse mortgage, the bank actually pays you, up to a predetermined percentage of your home value. That money can come in a lump sum, monthly payments or a line of credit. To qualify for a reverse mortgage, you must be 62 or older, and the home you’re buying must be your principal residence.
“The advantage to a reverse mortgage is you don’t have to make payments,” says Casey Fleming, author of “The Loan Guide: How to Get the Best Possible Mortgage” and a mortgage professional in the San Francisco Bay Area. “A lot of people have enough money to pay cash for a new home, but they want to retain some cash.”
Teresa Mears writes about personal finance, real estate and retirement for U.S. News and other publications. She’s also written for MSN Money, The Miami Herald, The New York Times and The Boston Globe. She publishes Living on the Cheap and Miami on the Cheap. Follow her on Twitter @TeresaMears.
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