Move forward with caution on reverse mortgages
I live in an adult community and would like to obtain a reverse mortgage. I have had a difficult time getting information on this type mortgage. Can you help?
I’m not an expert on reverse mortgages, but I’ve received several similar questions, so I’ll give you the basics.
ConsumerReports.org explains them well: “Homeowners borrow part of the equity they have in their property, and the principal and accrued interest are repaid only after they die or move out. Over time, the owner’s equity diminishes while the amount of the loan increases – the opposite of a traditional mortgage.