Just because Wikipedia’s blacked out today (in protest of the Stop Online Piracy Act) doesn’t give Fox Business News an excuse to not get its reverse mortgage facts straight, as a recent article states that eligible homeowners can receive up to the value of their home in reverse mortgage proceeds.
Reverse mortgages allow homeowners who have reached age 62 or older to draw down on their home’s equity in exchange for cash. For instance, if your house is worth $250,000 you can get up to $250,000 either as a line of credit, all in a lump sum or via monthly payments.”
The article, which seeks to answer the headline’s question of “Who Should Do a Reverse Mortgage?”, says the loan is a possible solution for retirees whose nest eggs have been “rocked” by the economic storm.
Making sure that a reverse mortgage is the right move for a borrower is important, the article continues.
“What do you need the money for and when do you need it and are their other options worth considering,” are things borrowers should think about, Fox quotes NRMLA president Peter Bell as saying. “A lot of seniors do have a need because they have peaks and troughs when they need cash and sometimes they have to liquidate investments at an inopportune time.”
Fox Business also reminds prospective borrowers that even though their home will be “paying” them, they’re still responsible for keeping up with taxes and insurance related to the house.
The incorrect facts (including the misspelling of Bell’s last name) may mean the news outlet is one of the first casualties of SOPA, with many different websites (such as the English Wikipedia page) blacking out their pages today in protest of the bill.
Read the full article here.
Written by Alyssa Gerace