Federal Housing Administration

When reverse mortgages make sense

Many books and articles have been written about reverse mortgages. Very few, however, are written from the perspective of overall retirement-income planning.

Wade Pfau, PhD, CFA, a leading expert in retirement planning, has written a comprehensive book, "Reverse Mortgages: How to use Reverse Mortgages to Secure Your Retirement," that discusses the nuances of reverse mortgages in this context. I recommend it to anyone contemplating a reverse mortgage.

The book includes a history of reverse mortgages, including the changes in Department of Housing and Urban Development (HUD) regulations that corrected some previous disadvantages. These revised regulations ensure that...