Is a Reverse Mortgage Really a Bad Thing?
What You Should Know About a Reverse Mortgage
The words "reverse mortgage" stir up lots of emotions. Anger, fear – even loathing. But are reverse mortgages really a bad thing? The answer to that question is a resounding "No!" If you've been led to believe that all reverse mortgage products are a nightmare waiting to happen, here are a few things you need to know.
Not All Reverse Mortgages Are Created Equal
The first thing you need to understand is that not all reverse mortgages are the same. Are there some bad apples out there? Sure there are. But that's the way it is with any financial product. There are the good, bad and even the ugly lenders. It's just a matter of who you choose to work with.
They Don't Want To Steal Your Home
If you've been believing those rumors about a reverse mortgage being able to make you lose your home, you've been fed a line of poppycock. The legitimate lenders who offer reverse mortgage products are not out to steal your home. Unlike traditional mortgages or home equity loans, a home with a reverse mortgage can't really be foreclosed.
Where'd All The Bad Press Come From?
In all honesty, the reverse mortgage market has gotten a bad rap for no other reason than money-grubbing greed. Sure, there are some bad lenders out there. But that's not the main reason why this particular mortgage product draws so much controversy.
To put it bluntly, those who stand to inherit the equity in a home probably aren't to happy about it being cashed in by the homeowner. After all, if you cash in the equity of your home through a reverse mortgage, that's money those beneficiaries won't be inheriting. As horrible as it is to say, that's usually why children advise their parents against taking out a reverse mortgage.
So there you have it – the lowdown dirty truth about the reverse mortgage industry. Where reputable lenders are concerned, a reverse mortgage is not the enemy. It can actually be a life-saving tool that can make substantial changes to your finances and your quality of life.