“Reverse Mortgage: Yes or No?,” by Kim Blanton, Squared Away Blog
“The older people who either consider a reverse mortgage or actually get one don’t have much else to fall back on. Their primary assets – outside of their homes – are a car worth no more than $7,000 and about $2,000 in a checking account. This was one salient fact unearthed about reverse mortgage users – or people who’ve looked into them – in a 2014-2015 survey led by Stephanie Moulton at Ohio State University. This supports a later study by Moulton that found that people who take out the loans tend to be in worse shape financially than other homeowners. The survey provides a more complete picture of who is turning to reverse mortgages – and why other people find alternatives to solve their financial issues.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
What a surprise! People who take out reverse mortgages need the money. Who’da thought? If long-term care costs were a real risk in the absence of Medicaid’s huge home equity exemption, more people higher on the economic scale would use reverse mortgages to fun LTCI protection.