HuffPost: Reverse Mortgage Pros and Cons

This week, a Huffington Post column explored the pros and cons of taking out a reverse mortgage, ultimately urging readers to do their homework before making any kind of decision.

The column, submitted by Vice President of Visa, Inc. (NYSE: V) Jason Alderman, gives a basic description of what reverse mortgages are and their function before delving into a list of advantages and disadvantages of the products. 

Common factors like reverse mortgages’ role as a source of income, tax-free proceeds and non-recourse features were among those comprising the list of “pros.”

Advertisement

On the other hand, the “cons” included the possibility of outliving one’s equity, risk of health issues leading to residence vacancy, not having a home to leave to heirs, among others.

“Reverse mortgages have become a popular and controversial loan option for senior homeowners,” Alderman writes. “For some, these products may work well in special situations. However, every applicant should do extensive research and receive individualized financial, estate and tax advice in advance.”

The column did not mention the upcoming requirements that will take effect March 2 as a result of the financial assessment. 

Read the Huffington Post column.

Written by Jason Oliva

Join the Conversation (3)

see all

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

  • Thanks for sharing this worn out, tattered old message, this time presented by an illustrious “vice president” of a “high interest rate credit card racket” company. It helps to know that even people in schlock businesses can have uninformed opinions of reverse mortgages.

  • Of all people, Alderman, a vice president of one of the largest cash advancers in the country, does not understand the difference between a cash advance and income? This shows how really misunderstood reverse mortgages really are.

    The hecmvet is right on point. Alderman mainly shows his ignorance about reverse mortgages in his article. Unfortunately too many seniors will rely on what he writes because of his position in a company they are familiar with.

    Even if some count the article as positive, it is not a positive view of reverse mortgages and ignores the best and most positive uses of reverse mortgages. (Optimism springs eternal.)

  • The advise Alderman is giving is old hand as Hecmvet has stated. However, especially with all the changes that are happening with our industry you can’t stress enough to the public and our seniors to check out the HECM program so carefully.

    Naturally we know a reverse mortgage is not for everyone but we do know the good it will do for our seniors. The point Alderman should have focused on in his column is the up coming financial assessment ruling. He should have pointed out how important it is to deal with loan officers and companies that understand the changes and those that can guide them through what will affect them after March 2nd.

    Alderman did not touch on any of this. His column was boring and did not do the good it could have!

    John A. Smaldone

string(84) "https://reversemortgagedaily.com/2015/01/22/huffpost-reverse-mortgage-pros-and-cons/"

Share your opinion