Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
722,032+456
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
7.00%0.01
MortgageReverse

Financial Planning: The Changing Profile of Reverse Mortgage Borrowers

The reverse mortgage, once known as a product for those in desperate financial need, is appealing to a new consumer, according to a recent article by Financial Planning. 

“With its reduced fees and the new financial assessment, the [home equity conversion mortgage] HECM is now appealing to finance-savvy homeowners looking for additional tools to utilize in retirement planning,” Toby Dattolo, president of Heritage Mortgage Banking in Morristown, N.J., tells Financial Planning.

The Financial Assessment is also playing a role in the changing profile of reverse mortgage borrowers. 

“Reverse mortgages may become more of a retirement income tool and less of a life jacket for house-rich but cash-poor seniors,” Financial Planning notes.

But the product is not for everyone. 

“I analyzed whether the clients interested in buying a dream home should use a reverse mortgage or a traditional mortgage or existing assets for the purchase,” says Clarissa Hobson, a financial planner with Carnick & Kubik, personal financial advisors in Colorado Springs, Colo. “I concluded that a 30-year traditional loan would be the most advantageous to their long-term net worth, so they went in that direction.” 

Read the article here.

Written by Cassandra Dowell

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please