Reverse mortgages: A free look at the pros and cons

Sep 29th, 2020 | By | Category: Personal Finance/Consumers

With a strong housing market over the past several years, home prices have risen dramatically.  As a result, many older adults have significant equity in their homes.  At the same time, living expenses have also risen dramatically – 14 percent over the past three years.

Reverse mortgages (also known as a home equity conversion mortgage) have been around since 1961.  Early problems gave them something of a black eye.  Today, the program is tightly regulated and has become a viable option for older adult homeowners seeking to take advantage of their equity.

“Reverse Mortgages: Things Have Changed,” an information-only, online presentation hosted by Pierce County’s Aging and Disability Resources, assesses the pros and cons of reverse.  The free sessions will be offered on:

  • Oct. 8 at 7:00 p.m. Join online at https://piercecountywa.zoom.us/j/94340458572, or by phone at 253-215-8782 or 888-788-0099; Webinar ID: 943 4045 8572
  • Oct. 10 at 10 a.m. Join online at https://piercecountywa.zoom.us/j/91214406665, or by phone at 253-215-8782 or 888-788-0099;  Webinar ID: 912 1440 6665

A reverse mortgage — a loan available to homeowners 62 years old or older — allows them to convert part of the equity in their homes into cash to use as they wish. The financial product was conceived as a means to help retirees with limited income use the accumulated wealth in their homes to cover living expenses and pay for healthcare.

“There are many misconceptions around reverse mortgages,” said Aaron Van Valkenburg, manager of Aging and Disability Resources, a program of Pierce County government. “With time and regulation, they have become a viable financial tool for older adults who want another way to pay for long-term medical expenses or care at home or in a facility. Reverse mortgages have many more options for consumers than ever before. Homeowners should know the possibilities.”

Additional information about the presentations is available from Aging and Disability Resources at 253-798-4600 or 800-562-0332.

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