“New Thinking About Reverse Mortgages,” by Jeff Brown, Wall Street Journal

“In recent years . . . more financial advisers have warmed up to the idea of homeowners taking a reverse-mortgage line of credit when they are as young as 62, as a way to boost their nest egg. The key to this strategy is that the credit line grows over time, by amounts tied to the course of interest rates, and the unused portion can be converted to a substantial monthly income years later. And today, with inflation and interest rates widely expected to rise, these credit lines could be particularly valuable.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform): 
Reverse mortgages will take their rightful place as funders of long-term care when Medicaid stops exempting most home equity . . . as may happen at least in some states if Medicaid is block granted.  Once home equity is at risk, people will seek out LTC insurance as a better planning alternative to risking home equity.

New Thinking About Reverse Mortgages

Reminder: The Wall Street Journal is gated.