Tuesday, June 17, 2014

Reverse Mortgages

Henry Winkler is just the most recent celebrity spokesperson to pitch reverse mortgages on TV.  What exactly is reverse mortgage anyway?  Is it really a good idea, or more of a scam?  This page from the U.S. Department of Housing and Urban Development provides a breakdown of the basics:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/hecmhome

See the "General HECM Frequently Asked Questions" for a clear explanation about how a reverse mortgage differs from a traditional home equity loan.  And yes, for some people they can be a very good idea.  (Aaaaay, Fonzie wouldn't lie, right?  Exactamundo.)

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