HW Media connects and informs decision makers across the housing economy. Professionals rely on HW Media for breaking news, reporting, and industry data and rankings. Moving the Housing Market Forward.
NewsReverse Mortgage

FOX Local News: Reverse Mortgages Can be a Godsend

The recession has been especially hard on the nation’s senior population, leading more American’s age 62 and older turning to reverse mortgages to supplement their cash, according to a recent segment from FOX-5 Atlanta

“It’s not right for everybody, but in certain circumstances, [reverse mortgages] can be a godsend,” said John Adams, FOX-5 Atlanta’s real estate expert. 

Atlanta News, Weather, Traffic, and Sports | FOX 5

While reverse mortgages enable adults age 62 or older to tap into the equity in their homes, the financial product does not come without controversy, says FOX-5’s Tacoma Perry.

Much of the controversy the segment refers to relates to the high closing costs commonly associated with reverse mortgages, which could sometimes amount to $15,000 on day one, even though the borrower has yet to see a penny, says Adams. 

To ensure that seniors understand the loan, the Federal Housing Administration requires independent loan counseling before closing a reverse mortgage.

View the FOX-5 Atlanta coverage.

Written by Jason Oliva