Sponsor spotlight Ask the experts Is a reverse mortgage right for you?

Lynnwood, WAFinance

The rising popularity of reverse mortgages is reflected in media portrayals that suggest they offer retirees a hassle-free financial solution. As Brian J. Lockett, a Certified Financial Planner, notes, these loans can provide much-needed cash flow without monthly payments, making them appealing to some seniors. However, they come with significant costs and risks, including high interest rates and potential foreclosure due to non-payment of property taxes or insurance. Lockett identifies two scenarios where a reverse mortgage may be appropriate: when individuals are financially strained and need to eliminate mortgage payments, or when they have adequate resources and wish to leverage their home as a financial tool for legacy planning.

It's crucial for individuals to consult with financial advisors to explore this option and understand its implications fully. Reverse mortgages can also affect Medicaid eligibility, as lump-sum payments may increase liquid assets and impact benefits. Thus, individuals must weigh the pros against the cons carefully. Ultimately, informed decision-making will lead to better financial outcomes during retirement.

Related Articles

Sounder trains available for Sundays Seattle sports events

Sound Transit operates special Sounder train services for Seattle sports fans attending games on July 6. Trains will serve the Mariners game at T-Mobile Park and the Sounders match at Lumen Field, with the inbound train departing Everett at 10:45 a.m.

Election 2025 Dio Boucsieguez, candidate for Lynnwood City Council Position 1

Snohomish County's primary elections will take place on August 5, featuring two Lynnwood City Council seats with six candidates. Dio Boucsieguez, a business owner and local resident, is running for Position 1 against incumbent Derica Escamilla. He emphasizes transparency, accountability, and community engagement as key aspects of his campaign.

One year later, memory of Jayda Woods-Johnson still guides a grieving community to action

Community members gathered at Mukilteo Lighthouse Park to honor 13-year-old Jayda Woods-Johnson, who died in a shooting at Alderwood Mall last year. Attendees, many wearing red in her memory, shared stories and called for action on "Jayda's Law," aimed at stricter penalties for juvenile offenders. The trial for the suspect, Samuel Gizaw, is set to begin on July 18.