Understanding the Pros and Cons of Reverse Mortgages

TWL_2015_feb_blog17With more than 40 percent of Americans between the ages of 55 and 64 having no retirement savings, reverse mortgages continue to be an option for seniors looking for creative ways to generate retirement income. Unlike millennials, nearly 75 percent of senior Americans own their home. A recent Chicago Tribune article takes a careful look at the pros and cons associated with selecting this unique mortgage product, which defers interest and loan payments until the homeowner dies, sells or permanently moves from the home.  One of the biggest cons with this product is that a surviving spouse may lose the house  when the official borrower dies. Consulting with a knowledgeable real estate attorney before entering into a reverse mortgage can help ensure you understand all the terms of the deal.

For more pros and cons, read the entire article.

Image Source: American Advisors Group