The New York Times Got It Wrong About Reverse Mortgages
The New York Times Got It Wrong About Reverse Mortgages
There are tremendous Misunderstandings about reverse mortgages. A recent 2017 RICP Retirement Income Literacy report from The American College of Financial Services, which surveyed roughly 1,200 Americans about retirement income knowledge, found that Americans vastly misunderstand home equity and reverse mortgages. In a recent New York Times Article, some of these misconceptions were again pushed to the public. In a response piece with Forbes, Jamie Hopkins discusses the literacy report. Additionally, he explains some of the major misconceptions surrounding reverse mortgages. Consequently, Hopkins says that far too many Americans lack a retirement income plan that incorporates home equity and reverse mortgages into the plan.
Instead, many people think RMs are dangerous products where the homeowner gives up ownership. Instead, RMs require the homeowner to maintain ownership of the home. While reverse mortgages are not for everyone, they should be part of the planning discussion. To learn more, read this recent Forbes article interviewing Jamie Hopkins on the topic.