Reverse Morgages for Seniors
Housing is one of the primary concerns ... and largest financial decisions ... made by seniors.
Reverse mortgages are relatively new financial tools being used to help seniors pay healthcare costs, relocate to senior community housing, or downsize to a more energy efficient home.
The AARP (American Assoc. for Retired Persons) has a "Reverse Mortgage Education Program" that helps seniors weigh the advantages and costs of reverse mortgages.
"5 Questions to Ask Before Considering a Reverse Mortgage" explores the following key questions:
1. Do you really need a reverse mortgage? There are wise reasons to use reverse morgages and not so wise reasons!
2. Can you afford a reverse mortgage? These loans are very expensive and the amount you owe grows over time. The younger you are...the more the compound interest will grow.
3. Can you afford to start using up your home equity now? Timing is important to plan for your long term use of your equity.
4. Do you have less costly options? Other financial resources might make more sense than a reverse mortgage.
5. Do you fully understand how these loans work? Do you homework and understand this unique type of loan thoroughly.
Editor, Carolyn Allen
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