CBS News’ “Jill on Money” featured a recent podcast segment presenting Jill Schlesinger’s take on reverse mortgages in response to a question from a listener whose mother is considering one of the loans.
While she says they can be expensive, Schlesinger notes that reverse mortgages can be a viable option for seniors who are “hell bent” on staying in their homes.
Reverse mortgages are good, she says, for those who are on a fixed income and whose home is their biggest asset. “The younger you are, the less effective a reverse mortgage is,” she says, noting that the amount that can be borrowed depends on age and appraised value.
[Listen to the podcast starting at Minute 23:00]
While Schlesinger warns that costs can be steep and that alternatives should also be considered, she ultimately advises the listener that the reverse mortgage may be an option, and that he should attend meetings regarding the mortgage with his mother.
Visit the show on CBS Money Watch.
Written by Elizabeth Ecker