Senior Citizen's Guide to Cleveland 2016-17 Winter/Spring Edition - page 15
A reverse mortgage is a unique product that needs to
be studied—and those who misinform often do not take
the time to properly study or research it.
The most commonly heard misinformation is:
Reverse mortgages are some kind of scam
A reverse mortgage is a well thought out, very
creative and highly effective solution to a societal
problem—the inability of some seniors to have enough
money to get through their retirement years. With
people living longer than they might have anticipated
and with many people’s savings diminished by the
economic downturn, being able to use your home equity
is one of the sources of support and comfort available.
Reverse mortgages are too good to be true
Reverse mortgages are not a fantasy. They are by
no means a trick. You worked hard to earn the equity
in your home and you deserve the chance to use that
money if and when you need it. There is a cost attached
to a reverse mortgage, as with every loan. And there
are responsibilities that come with it.
Reverse mortgages are the loan of last resort
In some people’s cases they may be. For others
they may not be. You may choose to use a reverse
mortgage to help you cover your expenses while you
wait for your retirement savings account to go back to
their pre-recession levels. You may use it to help you
through until home values recover and you can sell your
home for a higher price. A reverse mortgage, like social
security, Medicare/Medicaid, IRAs and 401-Ks, is an
option in a retirement toolbox—and different situations
require different tools.
Reverse Mortgages
Common Misperceptions
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