Reverse Mortgages – What To Look Out For

Many retired people are finding their pensions, social security, and savings are not enough to make ends meet and are considering “reverse mortgages” on their paid off homes to supplement their income. Please be very careful with reverse mortgages. There is a lot of fraud out there. Programs are being offered where after a few payments to you the bank would then own your home and you don’t. 

Read The Fine Print – Some Things To Discuss And Consider:

– Some of the programs  stipulate terms that  if you were to die   the bank would get your house and your estate does not.

-You’re paying interest and finance charges back to the reverse mortgage companies to use the equity you built. 

-If you outlive the equity in your house you can become homeless and broke.

– Be sure to use a reputable company.  Check them out with the State Attorney General’s Office, Better Business Bureau and Licensing Boards.

 -Read the fine print or better yet, have an attorney read it and advise you.

 Always approach reverse mortgages with wisdom and caution. In some cases reverse mortgages may work well, but in most cases they will not. You go from a debt free roof over your head to a mortgaged home you can lose.

If you have any questions about your home’s value and would like to discuss some of the options available in this current real estate market, please feel free to call me at 235-0007.

Linda

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