“The Answers to Common Reverse Mortgage Questions,” by Richard Eisenberg, Next Avenue

“You’ve likely seen the TV commercials for reverse mortgages, with the late Fred Thompson, Henry Winkler and, lately, Tom Selleck. But just between us: Do you really understand how a reverse mortgage works? If not, don’t feel bad — in a March 2017 National Council on Aging survey, 66 percent of older homeowners said they’d need to do more research to understand a reverse mortgage line of credit. But I can offer some assistance to help explain how reverse mortgages work and cautions about them, based on a reverse mortgage webinar I just hosted.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
Sooner or later, reverse mortgages will be the salvation for LTC financing. When Medicaid hits the fiscal wall, its big home equity exemption will have to go. Then RMs will become a major LTC funding source pumping desperately needed private financial oxygen into the system and improving care access and quality for all. But as home equity becomes liable for LTC, people will see the risk and cost more clearly than now. At that point, LTC insurance will re-emerge as must-have risk-sharing protection for thoughtful planners in the vast middle market. Thanks to Eileen Tell of ET Consulting for bringing this article to our attention.

The Answers to Common Reverse Mortgage Questions