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Reverse mortgages can be a secure source of retirement income 2010-02-22 Reverse mortgages may be ideal for some cash-strapped seniors, a financial expert wrote recently. Bills.com CEO Andrew Housser wrote for Washington-state NBC affiliates KNDO and KNDU that reverse mortgages can provide "tremendous peace of mind" and help retirees stave off crippling debt. But, he cautioned, the loans are complex and retirees should educate themselves before initiating the application process. For example, knowing the rules of eligibility is an essential prerequisite to applying for a reverse mortgage. The loans are available to homeowners aged 62 or older, and applicants must have a significant equity stake in their homes. In addition, Housser writes, it's useful to know how much could be taken out under a reverse mortgage. The Federal Housing Administration - which insures a type of reverse mortgage called a home equity conversion mortgage - regulates borrowing amounts. It's important to understand the responsibilities that accompany a reverse mortgage, too: Homeowners must keep their homes in respectable condition for the duration of the loan, for example. A good source of information, Housser says, is the Federal Trade Commission's website. Potential applicants can also estimate the amount that they can borrow using an online calculator.  |
