NBC’s The Today Show this morning devoted a four minute segment to the topic of reverse mortgages, spelling out the details of the loans for the increasing number of people who are interested.
Seeing more questions and more interest lately from those who qualify, Today’s financial editor Jean Chatzky answered questions on reverse mortgages, how they work, and whom they are right for.
“You can stay in your home until you die or until you’ve moved out for 12 months,” Chatzky says. “Even if you drain almost all the equity from the home, the bank can’t force you to move.”
The segment does address reverse mortgage fees, which Chatzky says can range from $2,000 to $10,000.
She also touches on the issue of home inheritance, urging potential borrowers to ask the question: why are they so attached to their homes?
“Sometimes people think their kids will be just devastated if they don’t get the house and in reality, that’s not the case. So talk about it,” she says.
“Overall, is this something that’s going to give someone who’s going into retirement some peace of mind?” asks Carl Quintanilla. “Or is this something for someone who says, ‘You know what? I always wanted that dream house in Florida, as well.’?”
“It can actually be both,” Chatzky says.
Written by Elizabeth Ecker