Reverse Mortgage Can Preserve The Portfolio During A Bear Market

Instant online reverse mortgage quotes are easily provided by reliable lenders based on your age, appraised value of the home, prevailing reverse mortgage interest rates and mortgage balance. In order to be qualified, you must be 62 years old and older with a home that is occupied as primary residence.

According to experts Wade PFau, retirement income professor at the American College of Financial Services and Barry Sacks, an attorney who have been writing extensively about reverse mortgages, in a bear market reverse mortgages will preserve the portfolio until the prices rebound in the declining market. However, this will only happen if you are paying bills during retirement by gradually selling equities.

Unlike the home equity loan, there are no regular payments for reverse mortgages; however, there are other expenses that seniors need to be updated with like real estate taxes, home insurance and maintenance. On the other hand, James Lockhart, co-chairman of Bipartisan Policy Center Commission on Retirement Security said that home equity creates more stability during retirement. Home equity is a pool of wealth that Americans must use for their retirement needs.

The consensus in the symposium for housing wealth in retirement is reverse mortgages are safer nowadays as more Americans become qualified for reverse mortgages. Financial planners have overemphasized accumulation of money for retirement but they have not discussed with their clients how to access the wealth in order to pay for expenses during retirement.

According to Mark Iwry, retirement tax policy point person during President Obama’s administration, people must be well informed on the pros and cons of reverse mortgage because home equity can be a cushion for financial emergencies. He is shocked that financial advisers are not discussing housing wealth during retirement. Human resources department must also discuss reverse mortgage during retirement income exit interviews so that their retiring employees will understand the financial tool.

It is important for seniors to compare reverse mortgage quotes that they receive from lenders to gain the best possible deal. There are lenders that provide the lowest fees and interest rates but highest payouts. Be well informed before you make a big decision that will affect your retirement life.

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