I think of this as a true last resort. The high interest rate is usually not thought of, but it quickly eats away at home equity. The high origination fees instantly take a large chunk of equity and then of course there is the church's long standing doctrine of "GET OUT OF DEBT AND STAY OUT OF DEBT!". A reverse mortgage is still a debt. Many seniors lost their equity in a down market and when they also lost good health, they had nothing left to pay outstanding medical bills and for quality assisted living. In seeking to maintain an artificially high lifestyle, they took the risk that they would be thrown into the worst conditions when their health tanked at the same time that the market tanked. It was sad, but we can learn from it..
DianneFebruary 12, 2013
Thanks for such an informative article. I can see my options more clearly now.
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ldsseniorJune 3, 2015
I think of this as a true last resort. The high interest rate is usually not thought of, but it quickly eats away at home equity. The high origination fees instantly take a large chunk of equity and then of course there is the church's long standing doctrine of "GET OUT OF DEBT AND STAY OUT OF DEBT!". A reverse mortgage is still a debt. Many seniors lost their equity in a down market and when they also lost good health, they had nothing left to pay outstanding medical bills and for quality assisted living. In seeking to maintain an artificially high lifestyle, they took the risk that they would be thrown into the worst conditions when their health tanked at the same time that the market tanked. It was sad, but we can learn from it..
DianneFebruary 12, 2013
Thanks for such an informative article. I can see my options more clearly now.
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