A reverse mortgage is a complicated financial product which may help someone over 62 years old in need of additional cash flow based upon built up equity in a home property.  However, reverse mortgages are not for everyone as it has hefty closing costs (usually around 5% of the appraised value) and there is currently no safe investments for lump sum payouts which pay equal or more than to the reverse mortgage interest rate.  Reverse mortgages are regulated in part by the government, but are not a government sponsored program.  You should avoid any individual or company stating that the reverse mortgage is a government program and avoid any individual or company who advise to purchase life insurance or an annuity with a lump sum fee as you will pay additional fees to obtain the product.  You should consult with an independent financial planner or elder attorney to discuss whether or not a reverse mortgage is right for you.

The following is a link to a site with more information on reverse mortgages. Daily Fiance Reverse Mortgages.

Leave a Reply