What is bad about reverse mortgages?

Reverse mortgages are marketed as a solution to seniors' money problems or a way to more fully enjoy retirement. However, they can be hard to understand, and the fees and interest can use up a substantial portion of a homeowner's equity. For many older adults, there are better solutions to financial struggles. read more

Single-Purpose Reverse Mortgages – With a single-purpose reverse mortgage, the lender restricts how you can use the money from a reverse mortgage. For example, a single-purpose reverse mortgage may only be used to pay off property taxes or to make home repairs. read more

Reverse mortgages do have a bad side. There are many reasons to avoid taking a reverse mortgage loan on your primary residence. Your equity is typically in America the biggest source of wealth and you need to get educated to protect this wealth you have accumulated. read more

A reverse mortgage gives the lender the primary claim on the home after the last homeowner passes away. Since interest on the loan adds to the loan balance, the longer the reverse mortgage is outstanding, the greater the amount to be paid off and the less the heirs will get out of the home equity. read more