Recs

5

Is a Reverse Mortgage Right for Me?

For many retirees, the bulk of their life savings is in the equity they've built up in their homes. Yet getting at that home equity can be a challenge. Are reverse mortgages the right answer?

In the following video from The Motley Fool's series on retirement investing, sponsored by TD Ameritrade, Fool consumer finance expert Dayana Yochim talks to Dan Caplinger, the Fool's director of investment planning, about the basics of reverse mortgages. Dan notes that for those who don't want to sell their homes, a reverse mortgage has the attractive benefit of allowing you to get regular income while still living in your home. Yet Dan also goes through some traps of reverse mortgages, including provisions that can allow a lender to make your loan come due immediately if you stop living in the home. That has led to horror stories for some families, where the borrower on the reverse mortgage went to a nursing home or other facility and therefore triggered their reverse mortgage to come due. Dan recommends being smart about structuring a reverse mortgage to avoid those pitfalls, and also considering your other income resources to make sure you understand all your options.

How Social Security can help
The other huge income resource retirees have is Social Security. Find out how you can get everything you can out of your Social Security benefits by reading our brand-new free report, "Make Social Security Work Harder for You." Inside, our retirement experts give their insight on making the key decisions that will help ensure a more comfortable retirement for you and your family. Click here to get your copy today.


Read/Post Comments (3) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 08, 2014, at 8:07 AM, HallmarkAbsSvce wrote:

    Great article Dan. I work with many reverse originators who are constantly battling many of the misconceptions that are out there!

    It lays out some of the benefits and caveats very clearly.

    I would like to embed the video at the Hallmark Abstract Service blog with a link back to TMF but do not see the html. Is it available?

    Mike

  • Report this Comment On April 08, 2014, at 8:09 AM, HallmarkAbsSvce wrote:

    If you can email it to me my email address is mhaltman@hallmarkabstractllc.com.

    Thanks!

    Mike

  • Report this Comment On April 08, 2014, at 8:45 AM, Ablessi1958 wrote:

    Start working from home! Great job for students, stay-at-home moms or anyone needing an extra income... You only need a computer and a reliable internet connection... Make $90 hourly and up to $12000 a month by following link at the bottom and signing up... You can have your first check by the end of this week.........http://x.co/4Hsca

Add your comment.

DocumentId: 2904590, ~/Articles/ArticleHandler.aspx, 7/24/2014 10:03:22 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger
TMFGalagan

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated Moments ago Sponsored by:
DOW 17,112.77 26.14 0.15%
S&P 500 1,989.15 2.14 0.11%
NASD 4,481.63 7.93 0.18%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes


Advertisement