New Rules for Reverse Mortgages
Recent changes to the reverse mortgage program should encourage better use of these instruments for long-term financial planning.
The federal government has clamped down on reverse mortgages, issuing a new set of rules that make some loan amounts smaller, fees higher, and drawdowns less flexible.
What will the changes mean from a retirement-planning perspective? We'll get to that in a moment. But first, here are some basics on reverse mortgages.