Tuesday, November 22, 2016

More seniors than ever before have large mortgage balances; more on reverse mortgages

Paula Span has a disturbing story on p. D5 of the New York Times today, Tuesday, November 22, 2016, in a series called “The New Old Age”.  The article title is “Swimming in a rising tide of mortgage debt” or (online), “They’re growing older: their mortgage debt deepens.”

The article examines the growing number of seniors whose loan balance is at least 80% of the value, and even of seniors who are still underwater.

Frequently, senior incomes drop with retirement, or with under-employment in the job market, and their ability to pay off mortgages weakens.

Then, there are ways to get hurt by reverse mortgages that is, by what a loan officer or sales person tells you.  You still have to pay taxes and insurance and keep the home livable.  It’s not a good idea to take a spouse off the title.  Charles Guinn (“Aging in Place Specialist”)  talks in the video.  

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