Texas Tech University

Reverse Mortgages: What the Research Says

News Blaze

October 21, 2016

News Blaze - In the past, reverse mortgages were often seen as a need-to-have option among households that hadn’t saved well for retirement and found themselves short on cash flow in their later years.

In many cases, financial planners did not advise them, with the reason being that the benefit they offered to most households would not justify the costs. There were also concerns around the safety of reverse mortgages for couples where only one spouse qualified, leaving the non-borrowing spouse lacking options if the borrowing spouse passed away.

Shaun Pfeiffer, Ph.D; John Salter, Ph.D, CFP, AIFA; and Harold Evensky, CFP, AIF, financial planners and professors at Texas Tech University, explore the use of a reverse mortgage line of credit as a standby strategy in retirement.

Among their conclusions: today's interest rate environment makes the use of a reverse mortgage in financial planning strategy even more attractive.

Read the full story here.