Your Money, Your Wealth 3 Ways a Reverse Mortgage Can Supercharge Your Retirement - 168
May 8, 2018
Dr. Wade Pfau, a retirement researcher and professor, shares insights on reverse mortgages and their potential to transform retirement planning. He explains the basic rules, including eligibility and the benefits of opening a Home Equity Conversion Mortgage (HECM) early for future borrowing power. Wade addresses the improved regulations that protect retirees and discusses strategies to use HECMs to manage market downturns and delay Social Security. This practical look at reverse mortgages challenges common misconceptions and highlights their value for middle-class retirees.
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Social Security Mistake Paid $50,000
- Joe Anderson recounted his mother receiving a $50,000 Social Security correction after an SSA error.
- He used that story to highlight common mistakes and the value of checking Social Security records.
Open HECM Early To Let Credit Grow
- Opening a HECM line of credit early lets the unused credit grow over time at the loan interest rate.
- That growing credit often outperforms waiting to open the reverse mortgage later when you are older and the home is worth more.
Check Core HECM Eligibility Rules
- Ensure eligibility requirements before pursuing a HECM: age 62+, primary residence, counseling, and meeting homeowner obligations.
- Do not keep other debt secured by the home once the reverse mortgage is in place.