Comments on: The Good, the Bad, and the Ugly About Reverse Mortgages

By: Levi @ Wealthnote.com

Levi @ Wealthnote.com — Fri, 14 Dec 2012 19:52:18 +0000

These types of mortgages should only be used by those who don’t think they are going to live much longer, and don’t have any children they want to pass on the debt when they pass on. If you are irresponsible with money and don’t have anything for retirement, you may be left with no choice because you have to have money to live off of, but it should be used as a last resort. These are much like payday loans and even though they claim they can be used in a responsible fashion, the truth is they can really make your financial situation much worse.

By: Jacob @ iheartbudgets

Jacob @ iheartbudgets — Wed, 12 Dec 2012 17:50:56 +0000

Wow, these are worse than I thought! Didn’t know that house upkeep was REQUIRED for some of these loans. Plus, not only are you draining your equity and possibly having your heirs foor the bill, but the loan servicers are CHARGING YOU for the privelage. Don’t think I could ever recommend these in good conscience.

By: Ryan Hart

Ryan Hart — Tue, 11 Dec 2012 22:49:51 +0000

Jeff, this article is a great resource for anyone considering a reverse mortgage. You accurately pointed out many of the disadvantages that most people are unaware of. Unfortunately, the consequences from this type of financial product are usually left with the unsuspecting heirs and not the original homeowners.

By: Mike Collins

Mike Collins — Tue, 11 Dec 2012 20:06:49 +0000

My parents took out a reverse mortgage years ago (I was probably in college at the time). My dad was having health problems and couldn’t work in his final years and they were living off of Social Security and a small pension, but they were in the red every month. It seemed like a good idea to tap into the equity even knowing I’d probably never have an inheritance. Now the reverse mortgage balance is greater than the value of the house so there will be nothing left. Looking back it was a costly decision but they didn’t have to struggle quite so hard in their old age so I can live with it.