Ask the Experts: Do your homework on reverse mortgages
Sacremento Bee, October 28th, 2009
Our three new "Ask the Experts" writers have been busily answering financial questions this month from online readers.
Here's a sample of their advice on personal finance, wills/estates and investing.
To see more questions or to get advice from our other financial experts on taxes, banking and investment clubs, go to: www.sacbee.com/ask.
Pamela Christensen, Certified financial planner
I
expect to retire in about four years and will have a small Sacramento
County retirement. We also have about $150,000 in CDs to live on. My
parents got a reverse mortgage a couple years ago for the extra cash to
live on and to have no mortgage payment. It seems to be working for them and we are considering it as well. Is this type of mortgage safe?
As
with most financial planning, these issues are very individual. I like
reverse mortgages in some situations, although it's always wise to get
lots of counsel on your particular circumstances and the ramifications.
For instance, do you have heirs in line to inherit your house? Do they
want or need it? How much equity do you have in the home?
Do your
homework and learn as much as you can. Start by going to the federal
Department of Housing and Urban Development Web site (www.hud.gov)
and search for "Reverse Mortgages." There's also information on the
state Department of Real Estate Web site (www.dre. ca.gov). Click on
"Consumers", then "Home Buyers/Borrowers,"
then "DRE Publications and Resources." Talk to your estate planning
attorney and other financial professionals to get their opinions. Talk
with family and friends only if you know they are well educated in
reverse mortgages.
Read more of this article.
About Reverse Mortgages: Learn all about reverse mortgages at NewRetirement.com
Professional Financial Advisors: Find out what a financial advisor can do for you at NewRetirement.com.