There are many people who get reverse mortgage loans without realizing what they are getting into. Reputable lenders, the national government, senior organizations and some members of the media are working hard to make sure that seniors are aware of the pros and cons of reverse mortgage loans so that they can make informed decisions about getting this kind of home loan.
Unfortunately, there remain some borrowers who don't really think through their situation before getting a reverse mortgage loan and then they end up regretting the choice. This causes a bitter feeling and increases the likelihood that the general public will see the reverse mortgage loan as a bad thing. In reality the reverse mortgage can be a helpful means of accessing new income (just look at the many success stories that we've been able to report on here). But it requires that you know what you're getting into.
A recent news article recommending against the reverse mortgage loan summed it up with one turn of phrase. Writing about a woman who ended up regretting her reverse mortgage, the article's author said that the woman "jumped at the offer". When you're talking about hundreds of thousands of dollars in loan money, you shouldn't be jumping at anything. You should be carefully reviewing all of your financial options in order to make a wise decision.
The people who tend to be unhappy with their reverse mortgage loans are those people who didn't fully understand what they were getting into when they took out the loan. They are also often people who felt desperate for money and used the reverse mortgage income as a way to reduce that feeling. A decision based in logic is one that will likely not lead to regret.
Question of the Day: How long do you think you should take to review the reverse mortgage loan before agreeing to it?
