Here's what you need to know about reverse mortgages

Abstract

Home Equity Conversion Mortgage loan volume was up 26% in March, according to data from the U.S. Department of Housing and Urban Development. "This is still a great opportunity to consider a reverse mortgage," says Wade Pfau, PhD, a principal and advisor with Tysons, Virginia-based McLean Asset Management. "Research consistently shows that reverse mortgages can improve retirement planning outcomes" The all-in cost and risk of the reverse mortgage is still high. If you end up staying in the home for a short period, the costs will seem significantly higher. The line of credit will continue to grow. "All the sudden, they will seem very much higher," says Howard Hook, a senior wealth advisor in Princeton, New Jersey,