The Last Resort
By admin | June 12, 2007
I found a really great site today on shopping for a reverse mortgage. It includes some really great tips if you are in the market for obtaining a reverse mortgage. Like any other financial undertaking a reverse mortgage should be thought out carefully before going full steam ahead.
The idea of receiving money for the home you currently live is can be appealing but if money is all you are after then maybe you should consider selling as John Rother, the policy director for AARP in Washington advises.
“If your only objective is getting money, you’re better off selling,” Rother said. “This is not something you want to do casually – this is really more of a last resort.”
Another thing to consider is what if you are still alive and the payments you receive over a fixed period of time run out and you are left with the upkeep, the taxes, and the insurance on the house.
Think of a reverse mortgage as a last resort to obtain income in your retirement years.
“There is a price to be paid – and that is the interest cost of the funds borrowed, and that accumulates over time,” says Bob Jazwinski, a CPA and financial planner based in Hermitage, PA.
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