With the addition of actor Tom Selleck to the list of reverse mortgage celebrity spokespeople, the product is appealing to many more people than it has in the past, but these loans aren’t for everyone, explains a recent article by CNBC.
“The onetime “Magnum P.I.” actor’s elevator pitch for reverse mortgage lender Americna Advisors Group sounds appealing: Use one of the most valuable assets you own — in this case, your house — to generate cash in retirement,” the article says. “Some financial advisors say it’s a tempting strategy but may not be right for everyone.”
Prime candidates for reverse mortgages are people who have paid off their mortgages before retirement, the article states. But this isn’t necessarily always true. There are plenty of homeowners who do still owe money on their home and can successfully complete a reverse mortgage without getting in over their heads.
Choosing the line of credit payment option over a lump sum is also recommended in the article, and using the line of credit when it is absolutely necessary to cover unexpected expenses. Above all though, anyone considering a reverse mortgage should talk to a qualified reverse mortgage specialist, the article says.
Read the full article on CNBC.
Written by Alana Stramowski