Home 'annuity' could supplement seniors' incomesMay 16, 2013 @ 8:01 am
A recent article in U.S. News and World Report suggests seniors and baby boomers consider turning their homes into an annuity by using one of the least tapped avenues of a reverse mortgage.
These monthly payments are available under a feature of the loans called tenure payments. The payments allow borrowers to convert a percentage of their home's value into monthly payments for the time, or tenure, they remain in their homes, supplementing other retirement assets.
Most reverse mortgage borrowers now seek a one-time, lump-sum payout. Often, those funds evaporate sooner than expected.
While tenure payments are not widely discussed among existing lenders, they are the centerpiece of a new reverse-mortgage philosophy. For example, Bellevue-based Axia Financial believes tenure payments can be an extremely viable and attractive way for millions of seniors to at least partially close their retirement income gaps.
Jason Rantz says it's the Seattle DOT that's to blame for our awful commutes
Just in time for Halloween, western Washington spider season in full effect
10 reasons we know you're a Seattle driver
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.