Just like any financial tool, a reverse mortgage is not for everyone. If you are a senior who is struggling financially, you may want to do more research and see if it may be the right choice for you. Being financially aware is a very important asset when you age.
“When it comes to reverse mortgages, be a smart consumer, writes Fox News contributor Robert Massi in a column this week.
Massi in the past, presents major considerations for taking out a reverse mortgage, including references to recent updates such as the financial assessment and non-borrowing spouse protections that have recently been implemented.
“A reverse mortgage is basically a tax-free advance on your home equity,” Massi writes. “For some people, a reverse mortgage can offer financial freedom to enjoy their later years without worrying about income. For others, it can provide much needed help for staying in their homes. The money from a reverse mortgage can be used to provide help in meeting medical or caregiving expenses, or to help defray tax payments or home maintenance costs.”
However, he cautions, there are a few red flags to look out for, as well as details all prospective borrowers should attend to. Those include fees and other costs, and consideration for any spouse or heirs who may either live in the home, or inherit it in the case of the borrower’s passing away.”
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