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.”
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