Reverse mortgages can be useful in allowing senior borrowers to convert home equity into cash, but should not be taken without research upfront writes the Phildelphia Inquirer this week.
“Seniors often look to a reverse mortgage for extra cash,” the article begins. “But if you have savings, a family with whom you could live, or low-income assistance, a reverse mortgage should be your very last option.”
The Inquirer spoke with credit counseling agency Take Charge America’s Chief Education Officer Mike Sullivan for his take on reverse mortgages.
Reverse mortgages are an expensive way to borrow money, Sullivan told the publication. He outlined cost considerations including mortgage insurance, origination fees and closing costs as well as taxes and insurance and home maintenance.
Written by Elizabeth Ecker