While the oldest millennials won’t qualify for a Home Equity Conversion Mortgage (HECM) until 2043 at the earliest, millennials’ childhoods are far less likely than many with baby-boom parents. The debate about what happens to the house is bound to get attention.
That’s what happened in a short column exploring the topic of reverse mortgages by financial columnist Lillian Stone of Money Scoop, part of the Morning Brew series of newsletters owned by Insider.
“Have you checked the baby boomers in your life lately? My parents play too much golf and make their dogs drink water from their mugs,” the column reads. “They have also talked about downsizing and selling my childhood home, unlike other members of my generation who are at reverse mortgage parties to stay home after retirement. rice field.”
This column characterizes reverse mortgages as “a popular option for seniors” and briefly discusses some of the attributes that qualify for HECM.
“It’s essentially borrowing money against the value of the house, which means interest and fees will be added to the loan balance over time,” the column reads. The longer they stay in, the more they borrow from lenders because they don’t make monthly payments.Ultimately, the homeowner will have to repay the loan by selling the house. .”
Some specific details about the arrangement are missing, such as the borrower’s ability to make monthly payments if they so choose. We also take a more generally open approach.
“Overall, reverse mortgages can be a great strategy for savvy seniors planning to live in their home for the long term,” Stone wrote. For example, if your parents got a reverse mortgage and didn’t pay it off before they died, who do you think would be responsible?
The column states that loans are often repaid by selling the property, but doesn’t go into other details about repayment, such as the option to provide deeds in lieu of foreclosure. Nonetheless, the brief description of reverse mortgages and the product’s ability to provide generally neutral information about the product may indicate that the industry is making progress on the reputation front. outstanding concern among industry professionals for years.
read digit at the money scoop.