A reverse mortgage is a special type of loan that allows homeowners 62 and older to borrow against the accrued equity in their homes.
Enticing ads for reverse mortgages are everywhere, but few seniors know the associated risks.
Per the Consumer Financial Protection Bureau (CFPB), here are three things to remember when you see a reverse mortgage advertisement:
–A reverse mortgage is a home loan, not a government benefit.
–Reverse mortgage ads don’t always tell the whole story.
–Without a good plan, you could outlive your loan money.
Read the CFPB June 2015 Consumer Advisory, “Don’t Be Misled By Reverse Mortgage Advertising,” for straightforward facts about reverse mortgages that you won’t hear in ads.