I was reading an article the other day that had the opinion of reverse mortgages being a really bad idea. Their thought was that a person works for years and years to pay off the gain equity in their home, just to "give it away" to a reverse mortgage. I know that's not exactly the case, but they seemed to make a decent argument. They likened reverse mortgages with payday loans. I can see that comparison considering the deal can seem somewhat sweet but comes with quite a bit of loan fees and interest.
I'm not super educated on the subject and all the nuances of home equity and loans, but it can't be all bad, right? From what I've see a reverse mortgage can be a really good opportunity for those that need the extra income and are either really close to or own their home outright.
Anyone have any insight on this?
BlankCheck Wrote: So true, I've seen it to where it can make a break people. I think in rare circumstances a reverse mortgage is a good thing. If you're considering leaving the house to your kids, I would stay away from them of course.
I wonder why they're such a prominent option if most people know the bad outweighs the good.