Debunking the Top 10 Reverse Mortgage Downsides

June 17, 2024

Reverse mortgages often get a bad rap due to numerous myths and misconceptions about their downsides. This guide aims to set the record straight by addressing and dispelling ten common false claims.

Whether you’re considering a reverse mortgage, helping a loved one, or just curious, understanding the facts about reverse mortgage downsides can help you make an informed decision.

Table of Contents

• Claim #1. Reverse Mortgages Have Growing Interest and Fees

• Claim #2. Reverse Mortgages Have Complex Loan Terms

• Claim #3. Reverse Mortgages Affect Needs-Based Programs

• Claim #4. Reverse Mortgages Create Repayment Problems for Heirs

• Claim #5. Reverse Mortgages are Rising Debt/Falling Equity

• Claim #6. Reverse Mortgages Have Occupancy Restrictions

• Claim #7. Reverse Mortgages Can Be a Burden on Heirs

• Claim #8. Borrowers Must Maintain Taxes & Insurance

• Claim #9. Reverse Mortgages Have Risk of Negative Equity

• Claim #10. Potential for Scams

• Now Let’s Explore How a Reverse Mortgage Can Enhance Your Retirement

• Assessing the Upsides & Downsides

• Suitability FAQs

• Summary: Making Informed Decisions About Reverse Mortgages

10 False Claims on Reverse Mortgage “Downsides”

Claim #1. Reverse Mortgages Have Growing Interest and Fees

Although not having to make monthly payments might seem beneficial, the accruing interest compounds over the loan’s life, significantly increasing the total amount owed.

Truth:

Yes, interest does accrue over time, just like any other loan. However, with a reverse mortgage, you have the flexibility to make payments at any time without penalty, allowing you to manage the accruing interest as you see fit.

Claim #2. Reverse Mortgages Have Complex Loan Terms

The intricate details of reverse mortgages can be challenging to grasp. Some borrowers may find themselves surprised by certain conditions regarding loan repayment or property use limitations.

Truth:

Understanding a reverse mortgage can be straightforward with the right support. Between mandatory counseling, online resources, and patient lenders, you can grasp all the details at your own pace. Plus, you can cancel the loan anytime if it doesn’t feel right.

Claim #3. Reverse Mortgages Affect Needs-Based Programs

Effect on Needs-Based Programs: Proceeds from a reverse mortgage might affect eligibility for government programs like Medicaid or Supplemental Security Income (SSI). It is important to evaluate how this financial step could impact your benefit status.

Truth:

Borrowers who participate in needs-based programs need to ask the counselors at the program what would negate or endanger their program. For example, many needs-based programs are dependent on borrowers’ assets at the end of each month. If you participate in such a program, you can have a reverse mortgage and draw funds for needed expenses, but you must be diligent to be sure you use those funds so that they are not still in your account at month-end when your balance is reported. You need to know your program requirements, and you do not inadvertently make yourself ineligible for your needs-based program simply due to loan proceeds, which you allow to accumulate in your accounts.

Claim #4. Reverse Mortgages Create Repayment Problems for Heirs

The loan must be repaid upon the borrower’s death, relocation, or home sale. In this situation, heirs must sell the home or refinance the debt to keep it.

Truth:

The reverse mortgage was not intended to be a multi-generational loan. The best way to avoid issues later is to communicate with your heirs so they know what needs to be done after the last borrower passes or permanently leaves the home. Give them authorization to speak with the lender and the lender with them on behalf of the loan so that they do not need to waste time just getting information. Having a family trust or adding your heirs to the title with you in advance helps save time (speak to your family estate attorney for advice regarding your legal matters). Have a plan. No one likes to discuss death and disability, but if you have a plan and your heirs know what needs to be done, they can act swiftly and decisively, and the pressure to act is greatly reduced.

Claim #5. Reverse Mortgages are Rising Debt/Falling Equity

As you receive payments and interest adds up, your home’s equity decreases, potentially leaving less for your heirs. The non-recourse feature ensures debt won’t exceed the home’s value, but it might consume all equity if you live beyond life expectancy or your home value does not appreciate.

Truth:

You can always outlive your equity if the home does not appreciate, and the interest continues to accrue with a reverse mortgage on a home that does not appreciate. But if you were to obtain a 30-year forward loan and your home never appreciated, you could also pay more principal and interest over the life of the loan than the property is worth on the forward or traditional loan. The big difference is that with the reverse mortgage, you don’t have to make payments of principal and interest during the time you have the loan. Since the reverse mortgage is a non-recourse loan, even if you put all the money you don’t pay in payments in a bank account, the lender can never look to your estate or your heirs to pay back any amount that the sale of the property did not cover of the loan balance (even if your estate had other assets or you left them cash you were able to save by not making payments).

Claim #6. Reverse Mortgages Have Occupancy Restrictions

Should you need to move out permanently, such as relocating to a nursing home, the loan becomes due, which could complicate your ability to adjust living arrangements.

Truth:

You can be absent for up to 12 months for temporary rehabilitation. If it becomes obvious that you will not be able to return and that your situation is permanent, don’t wait until your 12 months have passed before you begin to act. Most people know within a short time if their situation will be temporary or permanent. If the need arises, start as early as possible to give yourself time to make a plan that is best for you and your family and is not pressured due to a need to act quickly.

Claim #7. Reverse Mortgages Can Be a Burden on Heirs

Heirs often find themselves unprepared for the reverse mortgage’s impact, having to understand and manage loan repayment to prevent foreclosure.

Truth:

As stated previously, heirs are usually unprepared when they are surprised by the presence of a reverse mortgage and how to deal with it. If they are educated about the loan, the process required to repay it, and the groundwork has already been laid to transfer title, connect them to the lender, and authorize communication, it can be so much easier and less stressful.

Claim #8. Borrowers Must Maintain Taxes & Insurance

It is mandatory to keep up with home maintenance, homeowner’s insurance, and property taxes. Neglecting these responsibilities can trigger a loan default, risking foreclosure.

Truth:

Just like any mortgage, maintaining property taxes and insurance is crucial. Staying on top of these responsibilities prevents loan default and keeps your home secure.

Claim #9. Reverse Mortgages Have Risk of Negative Equity

In a declining housing market, there’s a risk the loan balance could exceed the home’s value, especially if the property doesn’t appreciate as anticipated.

Truth:

Here again, if property values dropped, anyone with a loan could experience a situation whereby the loan balance could exceed the home’s value. It happened nationwide from 2009 through 2013 and not just to the owners of properties with reverse mortgages. However, reverse mortgages are non-recourse loans, and the borrowers’ estates or their heirs can never be made to pay for a shortfall between the property value and the loan balance. Furthermore, if an heir wants to keep a relative’s home whose value has declined, they have the option to pay the loan in full at the amount owed or 95% of the current market value. For example, if your mom’s reverse mortgage has a current balance of $150,000, but due to falling values in the area, her current market value is just $100,000, HUD will accept $95,000 as payment in full for that loan! Or if the heirs don’t want the home or the responsibility, they can walk away and owe nothing. Neither the lender nor HUD can look to any other assets of the borrower or their estate to cover the $50,000 shortfall that the sale of the home will not cover due to the loss of value.

Claim #10. Potential for Scams

The complexity of reverse mortgages can attract scams. Seniors should seek reputable, HUD-approved lenders to avoid deceptive practices.

Truth:

We have analyzed many scams involving seniors with reverse and traditional forward mortgages. Finding a reputable lender is extremely important, but staying active and engaged with senior relatives is also important. When really dissected, the problems are usually not the loan but what happened to the money. Anyone who can gain the trust of seniors or others with access to equity in their home has the potential to take advantage of that trust. I advise family members to talk with senior homeowners and listen if they want to talk about a reverse mortgage with you. By being aware of these challenges, seniors can better assess whether a reverse mortgage aligns with their financial goals and circumstances. It’s about making informed decisions and clearly understanding the potential impacts on your financial health and estate.

Now Let’s Explore How a Reverse Mortgage Can Enhance Your Retirement

A reverse mortgage can be a game-changer for many older adults, offering a mix of financial security and the freedom to live retirement on their terms. Let’s look at how it can help:

Making Your Home Age-In-Place Friendly: Need to make your home safer and more comfortable as you age? A reverse mortgage can fund essential upgrades, like installing ramps or walk-in tubs, making it easier to live in your home longer.

Spend How You Wish: With a reverse mortgage, you decide how to use the money. You can use it to cover everyday expenses, fund a few trips, or set it aside for unexpected bills. It’s your call.

Buy a New Home: Did you know you can use a reverse mortgage to buy a new home that better fits your retirement lifestyle? This lesser-known perk can make relocating in retirement smoother.

Paying for Care at Home: Health care needs can change as you age. A reverse mortgage can help pay for necessary in-home care, relieve financial pressure, and help you stay in your home.

Emergency Fund: Life throws curveballs, and having a financial cushion for surprises is critical. A reverse mortgage can be that safety net, giving you and your family peace of mind.

Protected by FHA Insurance: With a Home Equity Conversion Mortgage (HECM), you get several benefits, thanks to FHA insurance:

Spousal Protections: If your spouse isn’t borrowing with you, they can still stay in the home under certain conditions after you pass away.
Non-Recourse: You or your heirs won’t have to pay back more than your home’s selling price, even if it’s less than what you owe.
Guaranteed for Life: As long as you live in your home and keep up with taxes and insurance, you can access your line of credit or regular payments as planned.

A reverse mortgage can be more than just a way to use your home equity. It offers a flexible strategy for making your retirement enjoyable and secure.

Assessing the Upsides & Downsides

Aspect	Upside	Downside
Financial Flexibility	Provides access to home equity without monthly mortgage payments.	Limited options for further borrowing against home equity.
Loan Repayment	Repayment is deferred until the homeowner moves out, sells the home, or passes away.	Can result in less inheritance for heirs.
Income Source	Can serve as a supplemental income source in retirement.	Loan balance can increase over time, reducing home equity.
Interest Rates	Typically allows for a fixed rate on lump sum payouts.	Interest accumulates over the life of the loan, increasing the total debt.
Impact on Heirs	Heirs can choose to keep the home by paying off the reverse mortgage or selling the home.	Heirs might receive less from the estate due to the reverse mortgage borrowed.
Home Ownership	Homeowners retain the title and ownership of the home.	Homeowners are responsible for property taxes, insurance, and maintenance.
Eligibility	Available to homeowners aged 62 and older.	Not available to younger homeowners, limiting accessibility.

Suitability FAQs

What is the downside of a reverse mortgage?

A reverse mortgage has its pros and cons. One downside is that it uses your home’s equity, reducing the inheritance your heirs might receive. Additionally, taking a reverse mortgage too early in retirement might lead to regrets if your needs change or you decide to downsize later. It’s crucial to weigh the pros and cons and consult your trusted advisor to see if a reverse mortgage is right for you.

Is a reverse mortgage ever a good idea?

Yes, a reverse mortgage can be a good option for those wanting to access their home equity without dipping into liquid assets. It can provide funds for long-term care, home improvements and enhance retirement security. When used correctly, it can offer peace of mind with additional income for a more secure retirement.

Can you lose your home with a reverse mortgage?

You must meet the terms of your reverse mortgage loan, such as paying property charges, maintaining the home, and living there as your primary residence. Failing to do so can result in the loan becoming due, potentially leading to foreclosure if you can’t meet the loan commitments. It’s essential to stay on top of these obligations to remain in your home for life, regardless of the property’s value. Consult your trusted advisor for guidance.

What happens to a reverse mortgage when you die?

When the last borrower dies, the loan becomes due. Heirs must contact the lender to decide whether to refinance the loan or sell the property. Lenders typically allow time for this process. Any remaining equity after repaying the loan goes to your heirs. If the loan balance exceeds the home’s value, reverse mortgages are non-recourse, meaning your heirs won’t be responsible for the debt.

Is a reverse mortgage a scam?

No, reverse mortgages, especially the HECM (Home Equity Conversion Mortgage) insured by the government, are not scams. Misinformation exists, often spread by those like Dave Ramsey, but these loans are legitimate financial products. It’s important to educate yourself and understand the facts.

Important Considerations on Reverse Mortgages

Summary: Making Informed Decisions About Reverse Mortgages

While reverse mortgages can provide financial relief and greater flexibility during retirement, they have drawbacks and complexities. It is essential for homeowners to understand these aspects fully and to make an informed decision based on their circumstances, plans, and the needs of their heirs. Consulting with a financial advisor, an attorney specializing in elder law, or a HUD-approved counselor can provide valuable insights and guidance.

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Have a Question About Reverse Mortgages?

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Post your question in the comments below and anticipate a personalized response from Mr. Branson himself, typically within one business day. He's here to illuminate all angles of reverse mortgages, ensuring you're equipped with the knowledge to make informed decisions. Take this opportunity to gain insights from a seasoned professional.

17 Comments on this Article

Marlyn
May 16th, 2024

Hello Michael,

I have an existing reverse mortgage, and after reading your articles, I see that a line of credit associated with a reverse mortgage, as you have stated, is a "growing available amount over the life of the loan." However, my reverse mortgage states that the line of credit is only available within the first 10 years and is limited to an exact dollar amount.

Have I been scammed, or is this correct?

Thank you, your response is greatly appreciated.

Marilyn
Reply to Marlyn
- Michael Branson
  May 22nd, 2024
  
  Hello Marilyn,
  I don't think you were scammed. It sounds to me like you received a loan other than the HUD HECM reverse mortgage. Not all reverse mortgages are the same. We usually talk about the HUD program because it is the most common and, until recently, the most popular. However, the jumbo or proprietary programs are becoming increasingly popular as borrowers either don't meet HUD's guidelines or their property is valued higher than the HUD limits. If the program you ended up taking was one of those private programs, you would be subject to the parameters of that program.
  The private programs require their own counseling protocols and loan documents, which are conducted using their specific loan terms. While I cannot comment assuredly because I was not present for your counseling nor have I seen your documents, the amortization schedule presented to you in advance and all of the documentation should support a 10-year draw period if that is what your loan program offers. If you review your package and the disclosures and documents you received and signed prior to closing your loan do not support a 10-year draw, you should contact your lender.
  Reply to Michael
Felix O.
March 16th, 2024

We bought a house for $200,000 and now it's worth over $700,000. The home is paid off. We have a solar system loan $25,000 and about $10,000 in debt (we'll start paying interest on the $10,000 in December if not paid in full). I'm 68, retired and my wife is 63. She plans to retire at 65. We were thinking of obtaining a reverse mortgage to pay for the solar loan, the $10,000 debt, buy a small plug-in hybrid car and get hurricane impact windows...about $125,000 reverse mortgage loan. Is that advisable? Thank you.
Reply to Felix
- Michael Branson
  March 19th, 2024
  
  Hello Felix,
  Will it work? Yes. Is it advisable? That depends on your goals and further circumstances. Do you want to leave a home free of liens to heirs? Then it may not be advisable unless you also set up a plan to make payments on your loan. Many people don't know that while no payments are required on a reverse mortgage, you can choose to make payments in an amount up to and including payment in full at any time without penalty.
  Do you love your home and plan to stay there for the rest of your life, or do you think you want to move soon because your home does not meet your needs? A reverse mortgage is a great financial planning tool, and the line of credit grows over time on the unused portion of the line, meaning you will have more money available to you later if you don't use all the money now, but if you think you will need to move in a few years, a reverse mortgage is not a good short term option.
  Only you know your needs and intentions. Knowing what the loan will and won't do will allow you to make an informed decision though.
  Reply to Michael
JoAnne
December 30th, 2021

I'm a widow living on my social security. I think I understand how this works; If I use a reverse mortgage to supplement my monthly income, I should take a lump sum and put it in a savings account and draw off of it. Then, at "the end of the road", whatever money is left in savings and the sale of my home is used to pay off loan, right?
Reply to JoAnne
- Michael Branson
  January 11th, 2022
  
  Hello JoAnne,
  I advise you to talk to a financial planner and any family members you have available, but that is not the strategy I advise. If you plan to augment your income, I suggest that you borrow what you need, as you need it.
  While reverse mortgage interest rates are not high, they are higher than the interest you would receive on the money you placed into a bank account. By taking a lump sum draw and putting cash into a bank account, you would lose money every month as you accrue more interest on the money you borrowed than you would earn on the cash in the bank.
  Also, a growth feature on the line of credit allows the money left in the line of credit to grow on the unused portion of the line. If you borrow all the money, there is nothing left to grow. The growth is not interest anyone is paying you. It is like an increase in your borrowing ability, which means that later, if you need more money because you have medical expenses or for whatever reason, more money will be available.
  If you never borrow it, you or your estate (heirs) never accrue any interest on the funds and never have to repay them. However, if you do need them, they are available to you. If you borrow 100% of the funds available, you can remain in the home if you adhere to the reverse mortgage provisions but there would never be any additional funds available on that loan (you might be able to refinance later and get more funds but that is never guaranteed) and you would accrue the most possible interest on the loan cutting into your equity.
  You can always take the remaining funds from the equity line at any time if you feel you need them later, but if you take them gradually early in the loan, you accrue less interest and grow the line, which allows you access to the most possible funds later.
  Reply to Michael
Don P.
June 10th, 2021

Reverse mortgage was a life saver. First a $500 payment went away, thus a $500 income increase (penny saved etc.). We got a lump sum to get right with the world, and a line of credit. The line of credit grew at the rate of the loan, so I started using it as a savings account. My bank is giving me .01% and the line of credit is growing at 4.37%. If I must draw from the line of credit, there is no tax as it is a loan.

With 8 kids, all better off the us, will just have to deal with whatever happens. At least they have no need to care for us. We have refinanced our reverse mortgage once and are right now looking to do it again. We may have to wait another year or two, but I'll take it out when I can.
It's not for everyone, but it sure works for us.
Reply to Don
Elma C.
August 4th, 2020

My husband and I are both 75 years old and I need a Reverse Mortgage to buy a franchise for $70000. After I buy the business I like to pay the reverse mortgage monthly like $2000.00 per month. Is this a good idea?
Reply to Elma
- Michael Branson
  August 14th, 2020
  
  Hello Elma,
  I would tell you that you should seek the counsel of a financial advisor to determine if it is a "good idea" based on the franchise, the returns expected and shown historically, etc., but I can tell you that it is something you absolutely CAN do.
  If you were to take a line of credit with an initial draw of $70,000, the loan requires you to make no monthly payments, but you can make any payment in any amount you desire at any time.
  If you choose to do this, payback almost the entire amount owed but leave a very small balance of just a couple hundred dollars on the loan unpaid.
  The interest that will accrue will be miniscule, but you will have a line of credit available to you always, and that line will grow on the unused portion, meaning you will have a larger line available later should you ever need it.
  If you pay it down to a 0 balance, the line will be closed and paid in full, but if you leave a very small balance owing on the line, it will remain open and available to you for life as long as you remain living in the home.
  Reply to Michael
David H.
June 4th, 2020

Reverse mortgages have mostly downsides and few true upsides. The big unmentioned downside is that, unlike when the homeowner was making his mortgage payment every month which was mostly interest and little principal, in a reverse mortgage the bank is not paying the homeowner any interest. It is, essentially, a free loan to the bank.
Reply to David
- Michael Branson
  June 8th, 2020
  
  Hello David,
  I do not follow your reasoning. The bank does not pay any interest to the borrower on any loan.
  If you do not make any payments, there is no principal reduction, which is entirely within the borrower's control. While there are no payments due with a reverse mortgage, there is never a prepayment penalty, and borrowers can pay any amount at any time without penalty up to and including payment in full.
  You could make payments if you wanted the loan to accrue interest like a normal forward or traditional mortgage. The loan would accrue interest or pay down exactly as a forward loan would. Then, you would still know that you never had to make a payment at any time. It would be entirely voluntary.
  If you had months where you could not make a full payment or before the 15th of the month, there would be no negative consequences, late fees, or credit because there is no payment due in the first place.
  Reply to Michael
Teresa C.
May 26th, 2020

I inherited my family home after both of my parents passed. I would like to take a home equity line of credit in the home for upgrades and pay off a few bills and medical expenses and some reserve emergencies. The house has no current mortgage on it. But my credit is less than perfect and I work and make about $40,000 a year I really only want about $60,000. Want my payments t to be easily doable. As I plan to leave the house to my children, but I am only 59 years old do you have any ideas
Reply to Teresa
- Michael Branson
  June 2nd, 2020
  
  Hello Teresa,
  We do not offer Home Equity Lines of Credit, strictly reverse mortgages.
  Depending on how bad your credit is, you may find that the line of credit is still available, and I suggest you check with your local bank. You may find that when you turn 62, you want to pay the loan off with a reverse mortgage even if you want to leave the home to your heirs, and here is why.
  You can still make payments with a reverse mortgage, which would keep the loan balance from rising or even pay enough to pay it down or off, but you are not required to. If you miss a month or cannot make a full payment in any given month, there are no problems because there was nothing "due" in the first place.
  There is no draw period followed by a repayment period on a reverse mortgage so that you won't go for 10 years at interest, only then be hit with a larger payment when the loan goes into the repayment period of the loan (after you are no longer working).
  If you sit down before taking the loan, you can decide how much you want to pay, how much you want to pay back, and what payments are comfortable for you.
  Then, as long as you stick to your plan, you will always know what you owe and what asset is available to pass to your heirs (always subject to interest rates and home appreciation, of course).
  Reply to Michael
Gwen C.
April 24th, 2020

My husband and I are considering doing a reverse mortgage. We have no intention of selling our house, ever. I have retired and my husband is going to retire in August. So let's say we go ahead with a Reverse Mortgage and decide to turn around and pay it off. Does that mean we have the entire loan amount sitting in an account accumulating interest?
Reply to Gwen
- Michael Branson
  May 3rd, 2020
  
  Hello Gwen,
  The reverse mortgage amount available to you grows on the unused balance, but that is not "interest" being paid to you. Think of the line growth rate more like an increase in your credit limit. If you had a credit card with a limit of $10,000 and the lender raised your limit to $20,000, you would have more money available to spend, but they didn't give you $10,000. If you did spend the money, you would owe it and begin to accrue interest owed (not earned) on the money you spent for as long as it remained outstanding on the line.
  This is like how the reverse mortgage line of credit works. If you have $100,000 available on your line, your interest rate is 3%. You pay .5% for mortgage insurance premium (MIP) renewal, your line will grow on the unused balance at the same rate as the interest plus the MIP accrual rate or, in this example, 3.5%. So, at the end of the year, your line would be $103,500 and not $100,000. No one paid you $3,500. You have more money available to you now. In the second year, your growth would be based on the new balance and the interest rate.
  You can see that if you don't use the line for several years, you can accumulate quite a bit of extra borrowing power for later on when you need it the most. Your available line may increase considerably, but this is greater borrowing power, not interest you earn on anything. If you never borrowed it, it never has to be repaid (by you if you sell the house or later by your heirs). Also, no interest accrues on funds available but not used if not borrowed. You do begin to accrue interest on funds once you borrow them.
  There is never a prepayment penalty, you may repay any amount without penalty. The only thing I would caution you about is that if you want to keep the line open, be sure not to pay the loan down to a zero (0) balance (even a $100 balance will do), as that would cause the lender to close the loan at that time. Unlike a Home Equity Line of Credit or a credit card, the loan will not remain open with a zero balance.
  Reply to Michael
Kimberly
September 4th, 2019

My father has a reverse mortgage on his home, he has left me the home in his will, I've lived in the home with him the past 5 years paying the property taxes. What steps can I take now while he's still in good health to be able to keep and stay in the home after he passes? I have a steady job, but I don't have great credit and I'm worried I don't make enough money to pay the reverse mortgage. Will I lose the home? I don't want to sell it unless I have no choice.
Reply to Kimberly
- Michael Branson
  September 4th, 2019
  
  Hello Kimberly,
  
  The $64 question is can you afford the home, and can you qualify for a loan to refinance the reverse mortgage? If so, you are halfway there. Knowing this is the plan, begin to work on any credit issue you have now. There are many things you can do to raise your credit scores and if this is your goal, start that process now.
  Also, sit down with your dad and have a heart to heart conversation about what will happen when he passes. A will alone is not enough. Dad can set up a trust easily and make you a successor trustee then put the home in the trust so that title of the home passes to you should something happen to him.
  
  I am not an attorney! Seek out the assistance of a good estate attorney, it's not as expensive as many things and it will save you in the long run. From the lender's point of view, do not change the title of the home into the trust until AFTER you send the new trust to the servicer and they approve it -then have a local title company or title attorney change the title to avoid any possible issues with taxation if it is not done correctly.
  These are all steps that are easy to take now while dad is in good shape and of sound mind that can be very difficult after he passes.
  Reply to Michael

Discover the Downsides of Reverse Mortgages

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Debunking the Top 10 Reverse Mortgage Downsides

10 False Claims on Reverse Mortgage “Downsides”

Claim #1. Reverse Mortgages Have Growing Interest and Fees

Truth:

Claim #2. Reverse Mortgages Have Complex Loan Terms

Truth:

Claim #3. Reverse Mortgages Affect Needs-Based Programs

Truth:

Claim #4. Reverse Mortgages Create Repayment Problems for Heirs

Truth:

Claim #5. Reverse Mortgages are Rising Debt/Falling Equity

Truth:

Claim #6. Reverse Mortgages Have Occupancy Restrictions

Truth:

Claim #7. Reverse Mortgages Can Be a Burden on Heirs

Truth:

Claim #8. Borrowers Must Maintain Taxes & Insurance

Truth:

Claim #9. Reverse Mortgages Have Risk of Negative Equity

Truth:

Claim #10. Potential for Scams

Truth:

Now Let’s Explore How a Reverse Mortgage Can Enhance Your Retirement

Assessing the Upsides & Downsides

Suitability FAQs

What is the downside of a reverse mortgage?

Is a reverse mortgage ever a good idea?

Can you lose your home with a reverse mortgage?

What happens to a reverse mortgage when you die?

Is a reverse mortgage a scam?

Summary: Making Informed Decisions About Reverse Mortgages

Have a Question About Reverse Mortgages?

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