Is A Reverse Mortgage Safe?
Just to clarify for those who are not familiar with this term, a reverse mortgage is where a lender will actually ‘buy back’ your home from you based on your current equity allowing people that are retired to have a livable monthly income from their home, and not a lump sum from a home sale (not to mention a home to live in). This works in monthly payments from the lender to you personally.
As far as being safe, yes reverse mortgages can be a great way to draw the equity you’ve earned on a home or property to supplement an existing income.
You will of course want to fully understand the brevity of the loan from the lender and your options and obligations and how this might effect your estate in the event of death.
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