Family Circle Magazine published an article titled, “A Mortgage That Pays You,” that summarizes the pros and cons of reverse mortgages, quotes NRMLA President and CEO Peter Bell on the benefits of counseling, and urges readers to visit the consumer site, ReverseMortgage.org.
Founded in 1932, Family Circle has a circulation of four million subscribers, predominantly women, who are pre-retirees (median age 50.5) and own a home (76.9 percent).
The article’s author, Paula Chin, interviewed nationally syndicated financial columnist Terri Savage, who helped her father get a reverse mortgage in 2002. “He lived there happily for 16 more years,” said Savage. “After he died, the loan came due, and my brothers and I turned the condo over to the bank and that was that.”
Chin commented, “Reverse mortgages can be a financial boost for seniors who need to supplement their income, whether for health care expenses, home improvements or the peace of mind of knowing there’s money for a rainy day.”
Homeowners who are interested in taking out an FHA-insured reverse mortgage must talk beforehand with an independent housing counselor. “They’re not financial planners; they’re housing counselors. The idea is to help the borrower figure out if a reverse mortgage will work for them,” she quoted NRMLA president and CEO Peter Bell.