In today’s divisive culture of politics, media, religion, and sports, another item might be added to that list; the reverse mortgage. This ever-controversial financial tool seems to get a pretty bad wrap, but is there something we’re missing?
A reverse mortgage, a type of loan that allows homeowners over 62 access to the equity in their home, is an often-misunderstood strategy to create retirement income. There are many sources out there declaring that a reverse mortgage (reverse) is the worst thing any person could do. They say that using one is financial suicide. They claim that the bank could kick you out of your own home, that you’re stuck in the home forever and never sell it, among many other claims. But is it really that scary?
Unlike a traditional loan where a borrower pays the bank, a reverse mortgage has the bank pay you. Although this sounds lovely, there are some strings attached. A reverse can supplement retirement income, reduce monthly expenses, or even be used as an emergency fund.
On this week’s episode of the Eagle’s Nest Webcast we have Lorne Levy, a mortgage specialist, on the show to breakdown the good, bad, and misconceptions of a reverse mortgage. Lorne has helped many people through the process of understanding a reverse and showed them how it might work for them. Along with explaining the basics of how a reverse works, we will cover:
- Why someone would use one
- What is the best time to take out a reverse mortgage
- Why it might be a bad idea, and
- Common myths and misconceptions
If you’ve ever had questions about a reverse mortgage or have considered using one, you need to attend this episode.
