ABC News Good Money ran a segment on reverse mortgages earlier this week. ABC’s Tanya Rivero says that while the loans have been around for nearly 50 years (not quite), they’re just starting to catch on with homeowners across the country.
She talks with Eric Tyson, author of personal finance for seniors for dummies and asks him loads of questions. The segment is over 5:00 minutes and does a good job explaining the product.
Specifically Tyson discusses says a borrower needs to look at how many years they plan to remain in the home. “If you end up not holding onto the reverse mortgage for many years, the effective interest rate can be quite high,” he said.
First time I’ve heard that being discussed in the national media.
