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Dorchester---School teachers, along with many others near or in retirement may be finding their finances pinched after they stop working due to ever increasing expenses such as property taxes, heating costs, medical expenses and myriad other rising costs.
But if they are at least 62 and own a home, there is potential tax-free relief in their equity via a reverse mortgage. That was the message from John Brodrick, President Of Your Home For Life, a Westwood reverse mortgage company. He addressed the Retired Teachers Chapter of the Boston Teachers Union at their Fall 2006 Membership Meeting Thursday at the Bayside Exposition Center.
Brodrick told the teachers retirement planning has only recently started to focus on a most valuable asset—the home. Reverse mortgages allow senior homeowners to access a portion of their equity. Reverse mortgages are the fastest growing mortgage program in the country. The number of reverses written has increased by 100% each year for the past half decade.
“As the population ages you are going to see even more people turn to their homes for help in funding retirement,” Brodrick said. “A reverse mortgage can allow a homeowner to remain in their home,” Brodrick said. Reverse mortgages are insured and regulated by the Federal Housing Administration
Brodrick quoted the American Association of Retired Persons (AARP) saying their organization fields more calls for information about reverse mortgages than any other subject, including Social Security and Medicare combined.
Brodrick cautioned the teachers reverse mortgages are not right for everyone. “But for retirees with equity, who want to stay in their homes, it can be a Godsend,” he said.
The Boston Retired Teachers Chapter has 2200 members. Brodrick has 25 years of experience with mortgages and is the past president of the Mass. Mortgage Lenders Association.
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