Financial Advisor magazine is a popular publication read by financial professionals, and the latest in a slate of journals to point out many of the advantages of reverse mortgages. This magazine is read by 90,000 financial planners, registered investment advisors and independent broker-dealers each month. These professionals have long ignored the value of home equity in retirement planning, but that is rapidly changing. In recent months, financial advisors seem to have become aware of how useful reverse mortgages can be. In an article called “New Choice May Preserve Portfolios, Lower Cash Reserve Needs,” the author explains that reverse mortgages can be used to help preserve wealth and lower the amount of cash reserves that are needed in a sound financial plan. The writer’s crede...

A reverse mortgage allows you to stay in your home for as long as you live. After that, there could be some benefits for your heirs as well. Retirement brings the reality of estate planning into sharp focus. Many people put off decisions about how to handle their estates while they are working because it can be difficult to consider these questions. As we age, it is important to ensure that we plan to address some of the financial concerns our survivors will face. A reverse mortgage could be a valuable financial planning too for senior citizens while they are living. Your home could be your largest asset and a reverse mortgage can convert that asset to an income stream. With a Home Equity Conversion Mortgage (HECM), you can access the equity in that asset now and repay the loan later. No p...

Government-backed mortgage programs are priced to reflect risk. As mortgage defaults have mounted, the cost of these programs has increased. Initially taxpayers bear the cost of defaults but eventually the fees are increased to shift those costs to the people benefitting from the programs. There are definitely advantages and disadvantages to these programs, but their goal is to make housing more affordable and in many ways they have succeeded. However, defaults on mortgages have led to hundreds of billions in losses for the government agencies that guarantee the loans. The recent settlement between the states and major banks shows that there is plenty of blame to go around, but regulators are now doing all they can to make sure that nothing like that ever happens again. Insurance premiums ...