Wednesday, June 15, 2022

New Article on Reverse Mortgages

CNBC ran an article last month  Here’s what you need to know about reverse mortgages. Here's what the article points out

With the stock market getting volatile but the housing market still hot, reverse mortgages have become a more attractive tool for older Americans who need cash for retirement but want to stay in their homes.

Home Equity Conversion Mortgage loan volume was up 26% in March, according to data from the U.S. Department of Housing and Urban Development reported by service provider Reverse Market Insight. It dropped 3.8% in April but remained well above 6,000 loans for the month — above the average in the last few years.

As the article notes, a significant number of elders have home equity, "about 66% of the average retired American’s wealth," although costs are higher as a result of  a 2017 HUD rule change. The article lists and discusses the pros and cons of reverse mortgages.

Consumer Information, Current Affairs, Federal Statutes/Regulations, Housing | Permalink


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