I came across a great commentary on reverse mortgages from Tanta at Calculated Risk.
Here is a quick look at the article:
Reverse mortgages are truly Different. They are really the first mortgage product that was “engineered” for a highly specific borrower and situation. That borrower is of retirement age or older, is on a fixed and low-to-moderate income, and is the owner of a free-and-clear home. “House rich and cash poor” sums it up. Most importantly, this borrower wishes to remain in his or her home, but struggles to do so given limited income and the escalating costs of taxes, insurance, maintenance and repair on a property that no longer carries mortgage debt. You might get one or two golfin’ grannies who really just want to buy tickets to the next AARP cruise or blow it all in Vegas, but mostly you get elderly Social Security recipients whose property tax bill, thanks to the “unqualified buyer auction” that life has become lately, is too expensive on a fixed income.
To read the entire article click the link below: