Reverse Mortgage Pitfalls

Ferndale WA

Description

Think again. It's a loan. You sell your equity for pennies on the dollar and they own your house. Your loan accrues interest every month, adding to what you owe. You pay appraisal costs, inspection costs, a loan origination fee and closing costs like any other mortgage. You pay for an insurance policy that covers them in case they can't collect what you owe from the sale of your house. They dictate your maintenance, improvements and repairs spending and can evict you if you don't obey. It's a fool's game. If you need cash, a home equity loan is a far better option. There's a good reason they pitch this nonsense to homeowners with equity - it makes them a ton of profit.