Money

Reverse Mortgages

Are they too good to be true?

The ads for reverse mortgages, aka Home Equity Conversion Mortgages (HECM), tout them as a way for older people to take the equity out of their homes so they have money to spend on other things they want or need. They’ve been effective — more than 1 million reverse mortgages have been sold since introduced in 1990. In one ad, Tom Selleck, a celebrity who is credible among older folks, begins by saying, “I know what you’re thinking. Some things are too good to be true.”

 

I’ve always been skeptical of such products. As my initial impression, based only on the most cursory information, they’re just another way for financial companies to take advantage of people who are not money-savvy and are possibly facing difficult times. In other words, perfect marks for a con.

So I decided to look into whether they are indeed too good to be true. Here’s what I’ve learned…



Are you enjoying AgnitusLife.com?
Give us a LIKE and SHARE With Your Friends Now!

Our Mission

Agnitus: (Latin) — Recognition, acknowledgement.

We are committed to the idea that those of us in our mature years have a long way to go. We have the resources of time and money — but also a sense of purpose. We still want to explore, pursue new paths, and create new adventures; we celebrate our lives rather than just muddle through them. Agnituslife.com strives to be a dynamic platform that provides information you won’t find anywhere else, and that will help you continue to expand your horizons.

Stay up to date at Agnitus Life

See all the latest on "Bringing Excellence and Excitement to life after 60"!

Copyright 2018 | Created by AgnitusLife.com | Powered by Fortyo5 Inc