FYI: In the vast universe of consumer borrowing, reverse mortgages get little respect. They cause the same kind of eyebrow lift as pawn tickets, car title loans, rent-to-own TV sets and leased car tires. When I write about them, the next day’s mail has chiding notes suggesting that I failed to tell the gruesome downside of reverse mortgages.
Regards,
Ted
https://assetbuilder.com/knowledge-center/articles/another-big-win-for-reverse-mortgages
Comments
"the cost of getting a reverse mortgage is higher than the cost of getting a conventional mortgage. But it’s lower than the cost of guaranteed minimum benefit products offered by insurance companies and you can be certain that every dime of reverse mortgage income will be tax-free. The income from financial products may be partially, or entirely, taxable, depending on its original source."
Do these reverse mortgage payments provide enough income to outweigh the growing costs of property taxes and home maintenance?