With more and more Baby Boomers asking me about reverse mortgages, I felt the need to help enlighten you a little about the pitfalls of this type of loan. I have several clients who have taken then types of loans out, and not one has been happy with their reverse mortgage in the long run.
The risk is great, and everyone that I’ve run into says they’d not do another.
If you need any assistance in selling your home that is currently in a reverse mortgage, please get in touch. I’ve recently helped one retired couple and their son dispose of a home with a complicated reverse mortgage, so my skill are honed and ready for you!
The CFPB says the cost of a reverse mortgage tends to exceed its lifetime benefits, and withdrawing home equity could limit a person’s options when moving or experiencing a financial setback. “A reverse mortgage loan can help some older homeowners meet financial needs but can also jeopardize their retirement if not used carefully,” according to former CFPB Director Richard Cordray. “For consumers whose main asset is their home, taking out a reverse mortgage to delay Social Security claiming may risk their financial security because the cost of the loan will likely be more than the benefit they gain.”
Please read the complete article and decide whether or not it would work for you.