Once wary of reverse mortgages, AARP finance writer, Jane Bryant Quinn recently interviewed with Reverse Mortgage Daily to say that she’s had a change of heart.
A respected finance writer, Quinn contributes to the AARP monthly Bulletin and has been published in Newsweek and syndicated in more than 250 newspapers. Her list of accomplishments also includes TV work as she has appeared on various news shows including “Good Morning America.” Needless to say, when she has something to say, people listen – or read.
In her interview, Quinn tells Reverse Mortgage Daily, “I am very positive about reverse mortgages, but I wasn’t always. I have taken a new view on them, partly as a result of the new regulations passed last year.”
This new regulation is Financial Assessment, which was put in place by the Department of Housing and Urban Development and went into effect April 27, 2015. This financial review helps licensed specialists determine if the client is able to uphold the responsibilities of the loan, including continuing to pay their homeowners insurance, property taxes, and home maintenance costs. This review ensures clients are in the best position to succeed with their new loan.
Quinn also discussed how many financial advisors are discovering the usefulness of the reverse mortgage.
“There has also been a sort of discovery among financial advisers using the [reverse mortgage] line of credit. It’s a wonderful hedge against inflation to give yourself future borrowing power,” she said.
Quinn went on to discuss challenges that she believes are facing retirees today. The short answer: saving money.
While Quinn remains positive about reverse mortgages, she did have one word of caution.
“…[reverse mortgages] are only for people who intend to stay in their homes for 15-20 years, because you have to amortize those upfront costs. If you are settled in your house, want to stay there and increase your annual income, you can do that with a reverse mortgage credit line,” she said.
To learn more, check out the article to read the full interview.