Finance experts weigh in on seven important questions potential applicants should ask themselves when considering a reverse mortgage in a recent The Street article.
Topics covered in their answers include who reverse mortgages are and are not best suited for, why counseling is mandatory, costs associated with a reverse mortgage and more.
Reverse mortgages are a good option for those who have the majority of their wealth tied up in their home, Bankrate.com senior financial analyst Greg McBride told The Street, adding that it’s not a good option for those who even after receiving money from a reverse mortgage would struggle to pay the bills.
And while some retirees may forgo a reverse mortgage because of plans to give their home to their children, McBride told The Street, “As someone who has two retired parents, I don’t want their house – I want them to be comfortable and not worry about money.”
When considering the cost and payout of a reverse mortgage, Ben Simiskey, CPA and CEO of PLS Advisory, says potential borrowers should note there are closing costs associated, just as there are with a traditional forward mortgage.
“No matter where you turn for more information, do plenty of research,” Peter Bell, president and CEO of the National Reverse Mortgage Lenders Association, told The Street.
Read the full article at The Street.
Written by Cassandra Dowell