Reverse mortgages rules to change positively and negatively for retirees Retirees can anticipate both negative and positive effects from the government's decision to implement major changes to the Federal Housing Administration's reverse mortgage program, called Home Equity Conversion Mortgage, which will take effect on October 2, according to this article on Forbes. Some said the changes could make the program less attractive to borrowers, but the changes could also improve the market, reduce costs for some borrowers and secure HECM’s long-term health. Despite the changes, the main goal of the HECM program remains the same and that is to permit seniors to tap into their home equity and be better prepared financially.
Why you should pay off these 3 debts before you retire Debt is a major deterrent to enjoying retirement and making sure that these three debts - mortgages, student loans and credit cards - are paid off before a person retires will make life less worrisome, according to The Motley Fool. There has been an increase in bankruptcy rates among seniors and food insecurity is also major concern among nearly 3 million senior-headed households in 2015, therefore experts recommend that potential retirees prioritize retirement savings to avoid future financial mishaps, while also making sure that they eliminate these three debts one by one before they retire.
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