The subject of reverse mortgages came up on an episode of MSNBC’s Morning Joe amid a discussion of generational debt levels.
Citing research from the Urban Institute, workers under age 40 have fallen behind from where their parents were at their age, according to NBC Today’s Financial Editor Jean Chatzky, who adds that higher taxes and lower real wages have been significant contributors to these findings.
As a number of younger people take on “mountains” of student loan debt, MSNBC commentators suggest that they might not have enough resources to take advantage of reverse mortgages when they are older.
Several commentators pointed to reverse mortgage advertising including those featuring Fred Thompson and Robert Wagner, questioning whether potential borrowers are provided with all of the information they need upfront.
Chatzky says older homeowners need to know what they are getting into before taking out a reverse mortgage loan, and they are only suitable for the right type of borrower. While not a “scam,” she says, they can be very expensive.
Written by Jason Oliva