What Is The Catch On A Reverse Mortgage?
There is no catch with a reverse mortgage. You just are not required to make payments on the loan until you leave the home so the balance rises instead of falling each month as it would if you were making payments. All borrowers should take the time to educate themselves thoroughly before obtaining a reverse mortgage.
Is it smart to do a reverse mortgage?
Reverse mortgages can definitely help cash-strapped retirees generate extra money for living expenses. ... Because of the high upfront costs, a reverse mortgage is usually not a great option if you're borrowing a small amount or you plan to move in a few years.
Should I get a reverse mortgage? - Ultimate Guide to Retirement
All in all, reverse mortgage scams are intended to steal a homeowner's equity, leaving them with little left in the home and potentially putting them in danger of losing the property. Reverse mortgages are complex loans, making them the perfect product for a scam.
How To Recognize A Reverse Mortgage Scam
What is the problem with reverse mortgages?
Reverse mortgages come with higher fees than most traditional loans, and borrowers are also faced with mortgage insurance costs up to 2.5% of the home value. What's more, most reverse mortgage terms require borrowers to stay on top of property taxes, homeowners insurance and maintenance costs to avoid default.
Reverse Mortgage Reviews: Is It A Rip Off Or A Good Idea? - Forbes