As retirees start to face a cash crunch during retirement, a creative approach to providing income has surfaced: the reverse mortgage. A reverse mortgage should be carefully studied, because you are in essence taking an interest-bearing loan that is secured by the equity in your home.
One knock on reverse mortgages is that they can have a lot of costs associated with the loan. Be certain to shop around to get the best deal.I would ask that you check with your CPA, attorney and financial advisor to determine if a reverse mortgage is in your best interest. And it couldn't hurt to check the links listed after the jump:
The FINRA has an Investor Alert titled "Reverse Mortgages: Avoiding a Reversal of Fortune" at the following URL: http://www.finra.org/Investors/ProtectYourself/InvestorAlerts/RetirementAccounts/p038113 .
Please also visit the U.S. Department of Housing & Urban Development’s website and look for Reverse Mortgages for Seniors at http://www.hud.gov/buying/rvrsmort.cfm.
When it comes to Reverse Mortgages, please be certain that you completely understand the process, costs and ramifications of the transaction. [Other posts by Chris are linked at the very end of this post.]Best,
Christopher J. Conner
Certified Financial Planner TM
Certified Fund Specialist
Gainesville, Florida 32607
(Phone) 352-225-3132 (Fax) 352-225-3784
Cell 352-281-4646Advisory Services offered through Jonathan Roberts Advisory Group.
Securities offered through J.W. Cole Financial, Member FINRA/SIPC
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Other Posts by Chris