Using a reverse mortgage to pay off your first mortgage

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As Baby Boomers move into retirement, being able to remove the burden of a mortgage payment can be a tremendous help. Though reverse mortgages have had a less than stellar reputation over the years, they can be a useful financial tool for the right homeowner and the right situation, according to a recent article from Yahoo Finance.

 

Reverse mortgages are not only useful as a last resort option, the article points out. “Years past, financial planners didn’t view reverse mortgages as a planning tool,” David Johnson, associate professor of finance at the Maryville University in St. Louis, says in the article. “It was viewed as a last resort, and they assumed that the only people that do reverse mortgages are people that desperate. Clearly that’s not the case, and I think they are starting to view differently now.”1

 

  1. http://finance.yahoo.com/news/using-reverse-mortgage-pay-off-100000895.html