BBB: think twice before taking out a reverse mortgage
Reverse mortgages are widely advertised to seniors as a popular way to access the equity of their home, which may be attractive to consumers seeking a quick source for cash during tough financial times like the COVID-19 pandemic. Homeowners should fully understand all the costs, terms and conditions before applying for a reverse mortgage.
A reverse mortgage allows homeowners to convert part of the equity in a home to cash without having to sell the property. The cash may be paid to you in installments or a lump sum, so typically you don’t need to pay anything back if you live in your house.
Due to the attractiveness of these loans, senior citizens should be on guard against being charged excessive upfront fees for services that are generally available free or at a very low cost through the Department of Housing and Urban…