Get the Facts Before Choosing Reverse Mortgages

Get the Facts Before Choosing Reverse Mortgages,

With all the news about the housing crises, loan defaults and home foreclosures, borrowers are definitely becoming aware of the pitfalls of overextending themselves. I’m continuously receiving questions about the best way to approach a mortgage and how handling debt, particularly mortgage debt, fits into an overall financial plan.

One question that seems to be coming up more frequently is whether or not a reverse mortgage makes sense for older homeowners who want to increase their cash flow. Apparently, reverse mortgages - first introduced in 1988 - are becoming increasingly popular. According to an AARP study, consumer awareness is up and the median age for borrowers is down from 76 to 73. And as the boomer generation reaches 62, the age of eligibility, the market for reverse mortgages is expected to increase dramatically.

On the surface, a reverse mortgage can seem like a low-risk way for homeowners to tap into their equity for retirement needs, long-term care costs, or even to avoid foreclosure. Dig a little deeper and you’ll find that there are many factors to consider, from high fees to family inheritance issues. If you or someone you’re close to is thinking about a reverse mortgage, I strongly suggest you start with these general facts and carefully consider the pros and cons before making a decision.

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Post from: Reverse Mortgage Loan Blog

Get the Facts Before Choosing Reverse Mortgages

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Written by News & Feeds on June 12th, 2008 with comments disabled.
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