AARP supports reverse mortgages

Having AARP, endorse a product geared for seniors is about as good as it gets.  In fact, I’d say it probably goes right up there with getting in Oprah’s book club.  As a financial tool, reverse mortgages can be a great option, but for the sophisticated person, the reverse mortgage is usually just the tip of the iceberg.  Since I have been writing this blog, I have come across a new phenomenon in the industry of saavy seniors using these funds to pay for life insurance policies or other big loss/big reward type of financial tools.

The American Association for Retired Persons also supports reverse mortgages as a valid financial option, but urges borrowers to carefully consider whether the reverse mortgage is the correct product to meet their needs. To that end, borrowers should determine whether there are less costly options to access needed cash, make a long-term plan for managing assets, and develop a clear understanding of the reverse mortgage product.

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Written by charles dennis on May 19th, 2008 with no comments.
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