Reverse Mortgages and Health Care Costs
October 13, 2009
We have blogged before about the increasing popularity of reverse mortages. Reverse mortgages allow homeowners to be paid out the equity in their homes through a lump sum or a monthly payment.
Instead of making a house payment, your house makes you a payment.
As we look out on the future of the reverse mortgage product, those numbers could skyrocket yet more as the Baby Boom generation ages and faces significant health care costs.
The Aging of America
Doomsday prophets such as Robert Samuelson of the Washington Post are predicting that health care costs over the next decades will cripple America economically if nothing effective is done to address the issue.
Meanwhile, Congress has hotly debated the health care issue all summer, with seemingly little widespread agreement taking hold.
Cost of Long-Term Care High and Rising
With costs like those, it's understandable why long-term care insurance is selling well. But not everyone can afford long-term insurance.
A reverse mortgage is therefore a great option to have, even if you don't choose to use it.