Two things have happened in the last decade. 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% over the past three years.
Reverse Mortgages (also known as Home Equity Conversion Mortgage or HECM) have been around since 1961. Early problems with the program gave reverse mortgages a poor reputation. 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” will survey the pros and cons to the program and who should and should not consider it. Two information-only presentations will be offered.
- Oct. 8 at 7 p.m.
- Oct. 10 at 10 a.m.
A reverse mortgage is a loan available to homeowners, 62 years or older, that allows them to convert part of the equity in their homes into cash to use as they wish – short-term or long-term. The 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 health care.
“There are many misconceptions around reverse mortgages,” said Aaron Van Valkenburg, Pierce County Aging and Disability Resources manager. “Bad experiences early on lead to a bad reputation. With time and regulation, reverse mortgages 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. It’s helpful for homeowners to know the possibilities reverse mortgages offer.”
These are impartial, information-only presentations online. No RSVP is required. Sessions are free and open to all. For more information about the presentations, call the Pierce County Aging and Disability Resource Center at 253-798-4600 or 800- 562-0332.
Bob Riler, Pierce County Aging & Disability Resources