We don't typically think of the reverse mortgage loan as a form of financial investment. It's typically considered a financial necessity which assists an elderly individual in maintaining their way of life despite taking financial losses from retirement. However, the savvy retiree will find that thinking about the reverse home mortgage as a form of investment can actually make their financial situation even more stable.
A recent article on investing during the current recession pointed out that the reverse home mortgage is a loan that currently offers better returns than three different more common methods of investing.
'''If you''ve been in the house for 20 or 30 years, all you''ve seen is your rate of appreciation slowing,''' Mr. Glickstein explained. '''You''re still sitting on what may be the biggest piece of your retirement wealth.''' The reverse mortgage can give you better returns than a C.D., a money market fund or selling the house outright, he said. (source)
Seniors who have been involved in investments in the past may consider the reverse mortgage to be a financial risk. What must be kept in mind is that the state of the economy has changed in recent years and the real estate market has changed as well. These changes require a change in the investor's way of thinking - and they make the reverse mortgage loan something worth looking into.
Question of the Day: Do you agree that the reverse mortgage loan may offer better financial returns than CDs and money market accounts?
