Motley Fool: 4 Considerations for Reverse Mortgages

Reverse mortgages can help eligible older Americans generate additional revenue in retirement, but there are important details consumers should consider.

Potential borrowers should be wary of signing on the dotted line until they receive reverse mortgage advice, says The Motley Fool in a recent article.

“The best reverse mortgage advice doesn’t typically come from the banks that are trying to sell you on their reverse mortgage package,” writes Michael Lazar. “Rather, it comes from third-party sources that don’t earn an interest rate and profit off a packaged loan.”

For those considering a reverse mortgage, The Motley Fool suggests borrowers know their options, know the risks, understand it’s a big decision, and seek independent reverse mortgage advice.

“Be aware that there are risks involved when taking on any type of debt, including a reverse mortgage,” Lazar writes.
For example, if the home is sold then the loan is due immediately, including associated compounded interest. In addition, taking the lump-sum benefit may affect eligibility for programs like Medicaid, he notes.

Read the article here.

Written by Cassandra Dowel

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