Economist Laurence Kotlikoff offers an alternative to a reverse mortgage for the house-rich and cash-poor senior homeowner. He is not a fan of the Home Equity Conversion Mortgage, or HECM. "An HECM sounds like a great financial product. It lets people 62 and
older, many with little if any financial assets, tap into their home
equity to get either immediate or monthly cash payments to help pay
bills." Kotlikoff objects to the high fees and potentially high variable interest rates that lender charge on HECMs. As an alternative he suggests that a senior homeowner take out a mortgage and use the funds to buy a life-time annuity. If you are considering a HECM, read his opinion at:
http://www.seattletimes.com/business/a-reverse-mortgage-sounds-great-but-there-are-risks/
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ReplyDeleteThanks for the post.
Financial Planners
Tom Hofbauer directs the Private Portfolio Management for Trilogy Wealth Advisors. Formerly, Tom was the senior partner responsible for domestic and foreign options trading at Marquette Partners, a private money management group based in Chicago. He was also a floor trader on the Chicago Board of Options Exchange for 15 years before returning to Northwest Ohio with his family in 1997.
ReplyDeleteTom has a degree in Finance from Virginia Tech. A native of Montpelier, Ohio, Tom and his wife have two sons and reside in Bryan. Tom’s passion for horse racing has taken him to the Kentucky Derby each year for more than 20 years. In 2006, he and his family attended each of the Triple Crown races and Tom appeared on ESPN during the Preakness pre-race show as the “World’s Tallest Jockey. “ Tom is also an avid golfer and rabid Ohio State football fan.
Investment Advisors Northwest Ohio