While reverse mortgages offer a number of benefits to borrowers, they might not be a perfect fit for everyone, according to an article from NASDAQ.
Though there are numerous benefits of a reverse mortgage, the article also offers several “cons” such as potential Medicaid impact, fees associated with origination and closing costs, as well as the uncertainty of interest rates and the overall depletion of home equity.
When considering the pros and cons associated with reverse mortgages, NASDAQ suggests that the loans can have different impacts for different people, especially since not all borrowers are alike financially.
“This kind of mortgage is frequently promoted on television as the next best thing for seniors, with promises that the process is safe and practically risk free,” the article writes. “It is easy to be skeptical about such claims, but the truth is that reverse mortgages are a good option for certain seniors in certain economic situations.”
Written by Jason Oliva