If you’ve ever discussed reverse mortgages with friends or family, you’ve probably heard some version of “the bank takes your house” or “it’s only for people who are broke”. I hear myths like this constantly, and most of them are out of date or simply not accurate. Reverse mortgages have changed a lot over the years and can be very beneficial for seniors who are sitting on significant home equity and who want to stay in their homes. With that said, reverse mortgages may not be the right choice for everyone.
My goal with this post is to help clear up the most common misconceptions I run into and put reverse mortgages in context with other mortgage options available for people who are 62 and older. As always, I like to provide as much information as possible to help you make informed decisions about your finances. [Read more…]
If you’re 5 to 10 years from retirement and you haven’t taken a hard look at your mortgage lately, now is the time. Not because anything is wrong — but because the decisions you make in this window can significantly change what your financial picture looks like when you stop working.
Recently, I spoke with a Seattle homeowner who is planning a major remodel. Like many homeowners, he initially reached out asking about a HELOC — which is often the first option people think of when they want to improve their home. They currently have a very low rate with their existing mortgage, which is one reason why they’re considering a home equity line of credit.
