Reverse mortgages have become increasingly nuanced financial products over the past few years. Recent program changes made these loans more suitable for appropriate borrowers, while simultaneously creating new rules and requirements that seniors need to know.
Easily misunderstood by consumers, reverse mortgages can actually be a helpful financial planning tool for retirees, says a recent CBS News Money Watch article written by personal finance and real estate columnist Ilyce Glink.
From learning the basic functions of a reverse mortgage to verifying common myths related to these loans, the CBS News article highlights 10 important need-to-know facts that every consumer should consider when it comes to reverse mortgages.
“Some people think taking out a reverse mortgage means the bank owns your home, but that’s not true,” Glink credits National Reverse Mortgage Lenders Association President and CEO Peter Bell with saying in the article.
Other areas of focus include sections on why borrowers decide to obtain reverse mortgages, interest and fees, popularity of Home Equity Conversion Mortgages over the year and the importance of bringing family into the conversation, among other critical must-knows.
Read the CBS Money Watch article.
Written by Jason Oliva