The state of Massachusetts recently launched a new website to help educate older home owners about the pros and cons of reverse mortgages and the desirability of seeking financial counseling when considering one. "Reverse mortgages are loans that enable senior homeowners, typically 62 years and older, to convert the equity in their home into income," officials noted in a press release.
In a statement included with the release, Daniel C. Crane, undersecretary of consumer affairs and business regulation, said: “Reverse mortgages are extremely complicated products and consumers, beyond the required counseling, should make every effort to obtain independent legal and financial advice when considering one. It is important to appreciate the costs associated with these loans and that, over time, the loan will deplete the accumulated equity in your home.”
Massachusetts is the first state I’m aware of that has launched a consumer website for reverse mortgages.