Posted on May 19, 2020

Reverse Mortgage Specialists

Seniors Use Reverse Mortgage As Cash Lifeline Amid the Coronavirus Outbreak

The global economy is taking a beating from the coronavirus outbreak and investment portfolios are also taking a hit. Although all these bring unpleasant news to investors, the most affected ones are retirees who rely on their investments for income. And when these significant drops happen at the start of their retirement, they could lock in a lower nest, also referred to as sequence of return risk, permanently.

Financial planners suggest to leave the money even when the market is down. But this recommendation isn’t applicable for everybody. One approach that some financial advisors suggest to their clients is to take out reverse mortgages.

During the past few weeks, reverse mortgage applications have gone up. Applications for HECM or home equity conversion mortgage, which is the most usual kind of reverse mortgage that is backed up by the FHA orFederal Housing Administration, have gone up by 15% back in March. During the first quarter, applications increased by 50% compared to the same period in 2019.
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