Reverse mortgages are not suited for everybody, and the same goes for financial advisors, according to a recent CNBC article that attempts to rationalize the pros and cons of these often misunderstood loan products.
Whether it’s due to costs, arguably restrictive program changes or even celebrity TV endorsements, CNBC claims reverse mortgages have become the “ugly stepchildren of the home-lending industry.”
“Most financial advisors see the products as a last resort for cash-strapped seniors—and a bad one at that,” writes CNBC. “They are expensive, restrictive and usually don’t provide enough income to help borrowers meet their financial needs for very long.”
CNBC constructs its argument based on the viewpoints of just two financial advisors, neither of whom are entirely sold on the efficacy of reverse mortgages in retirement planning.
“The concept is sound—people have equity in their homes and can generate income from it, but the products in the marketplace still leave a lot to be desired,” said Ric Edelman, CEO of Edelman Financial, in the article.
Read the CNBC article.
Written by Jason Oliva