FOX Local News: Reverse Mortgages Can be a Godsend

The recession has been especially hard on the nation’s senior population, leading more American’s age 62 and older turning to reverse mortgages to supplement their cash, according to a recent segment from FOX-5 Atlanta

“It’s not right for everybody, but in certain circumstances, [reverse mortgages] can be a godsend,” said John Adams, FOX-5 Atlanta’s real estate expert. 

Advertisement

Atlanta News, Weather, Traffic, and Sports | FOX 5

While reverse mortgages enable adults age 62 or older to tap into the equity in their homes, the financial product does not come without controversy, says FOX-5’s Tacoma Perry.

Much of the controversy the segment refers to relates to the high closing costs commonly associated with reverse mortgages, which could sometimes amount to $15,000 on day one, even though the borrower has yet to see a penny, says Adams. 

To ensure that seniors understand the loan, the Federal Housing Administration requires independent loan counseling before closing a reverse mortgage.

View the FOX-5 Atlanta coverage.

Written by Jason Oliva

Join the Conversation (3)

see all

This is a professional community. Please use discretion when posting a comment.

    • No, John Adams’ is a knowledgeable real estate investor and radio show host here in Atlanta. He and I have met before to discuss HECMs, so he knows the product well. I don’t believe he’s on anyone’s payroll.

  • OK Lets look at originating a HECM in NY – Right now the interest rates have never been lower, some lenders are waiving servicing fees and it is the only mortgage loan where the tax is forgiven(in nY and some other state)= the fees are the same as in a a conventional EXCEPT they donot have the above fees- so what about the MIP- well have you ever paid PMI same thing Mortgage insurance people-only better- no personal liabllty for the loan. What other loan is going to let the consumer determine whether to use it as a refi, modification, home equity or reverse depending on the homeowner owner and equity-only qualification is that you are American citizen over 62 and can pay off prior mortgage and home is insurable? you can have horrible credit and use the program to pay off the loan sharking credit cards- I have seen this help hundreds of people- as for costing money up front= tell me, all the people who lost up to 57% percent of equity from their homes AND RECEIVED NOTHING IN RETURN FOR IT- was that is a better deal- the money up front came from that same equity that could disappear if this country gets hit with inflation-PLUS gives heirs 1 yr to sell property w no payments due(plus does not show up on a credit report which could increase credit score)- Understand the product before you demonize for the folks that could really use it- and guess what- they can use it to clear their other debt and come back to paying off the house= leaving less for kids to pay off-it is all in the planning-or life insurance- THINK about it- it is a tool that has helped many-only ppl who don’t are ppl who fear they will lose their inheritance are bothered by it.

string(94) "https://reversemortgagedaily.com/2013/05/02/fox-local-news-reverse-mortgages-can-be-a-godsend/"

Share your opinion