Money Rates contributor Andrew Freiburghouse poses a good question to readers, Are HECM Reverse Mortgages Too Cheap?

Pointing to Jack Guttentag’s More Bogus Arguments Against the Reverse Mortgage:

Typically, excessive costs are described as the most negative thing about taking out a reverse mortgage. But Guttentag nicely reverses the thinking on that point, wondering aloud if HECM costs are not actually too low to cover the exposure of the FHA that backs this loan.

There has yet to be a sustainable private product that provides anywhere near the benefits of the HECM, does that mean the loan is too cheap?

Putting politics and/or any personal beliefs and look at it from a cost perspective. Vote below.

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