Taking out a reverse mortgage is almost never a good idea — here's why
Christopher Furlong/Getty Images
- Reverse mortgages are loans available to people over 62 who would like to borrow against the value of their homes.
- They are often exorbitantly expensive — requiring additional premiums and fees.
- Instead of interest compounding on a lower number every month, like a regular mortgage, reverse mortgages compound on a higher number because of the additional premiums.
- In the case of death, your estate will have to pay off the remaining balance — and if you move out of the house, you have a year to close the loan.
The following is an adaptation from "You Don't Have to Drive an Uber in Retirement":
I'm generally not a fan of financial products pitched by former TV stars like Henry Winkler and Alan Thicke — and it's not because I once had a screaming argument with Thicke (true story). See the rest of the story at Business Insider
See Also:
- These are the 10 trendiest hairstyles for guys right now
- The backstory behind the shocking Bill Cosby rape allegations
- Inside the marriage of Donald and Melania Trump, who broke up once before, reportedly sleep in different bedrooms, and are weathering rumors of his affairs