Reverse Mortgages: Are They Really a Scam or Just Misunderstood?

The phrase reverse mortgages are a scam still circulates. Past missteps in the lending world and general misunderstandings about how the product works often cloud them. But do the facts support that claim? Not quite. While it’s true that reverse mortgages have earned a mixed reputation, much of the concern stems from outdated practices, misleading information, or a complete lack of understanding about what a reverse mortgage really is and how it functions in retirement planning.

What Exactly Is a Reverse Mortgage?

A reverse mortgage lets homeowners in Columbia, SC, typically aged 62 or older, to change a part of their home equity into cash. Selling the property or making monthly mortgage payments are not necessary. Instead of paying the bank, the bank pays you. That might sound suspicious to someone unfamiliar with the terms. But, the structure is legitimate and regulated. The loan only becomes due when the borrower passes away, moves out permanently, or fails to meet the loan conditions (like paying property taxes, insurance, and maintaining the home).

Read More Reverse Mortgages: Are They Really a Scam or Just Misunderstood?