I often see Robert Wagner (of Hart to Hart TV series and Austin Powers) hawking Reverse Mortgages. They seem great... if you are over 62 years old, have your house start paying you through a reverse mortgage. Interesting concept but what are the cons. There is a good discussion (and banter) of the pitfalls of a reverse mortgage.
Reverse Mortgage forums
I don't think we would ever do a reverse mortgage and I think I would tell my parents the same.
1 comment:
Looks like the homeowner just borrows against the house. It's not quite a HELOC but close. It accrues interest just like any other loan, and has high fees just like any other loan. The payoff time is different, though.
Much better option is to have liquid assets.
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