3 Things You May Not Have Heard About Reverse Mortgages

You probably already know that reverse mortgages are last-resort ways to get extra money as you grow older. But a pretty in-depth article over at SmartMoney reveals a few facts about these loans you may not know. For example:

1. “While there are no monthly loan payments to the lender, there may be monthly servicing fees.”
2. “How much you can borrow is a function of your age, your home’s value and current interest rates. Generally, the more valuable your home is and the older you are, the more you can borrow.”
3. “In most cases, interest rates on reverse mortgages are higher than what you’d pay for a traditional mortgage and interest costs begin accruing as soon as you take the money.”

The article, “How to Evaluate a Reverse Mortgage,” is basically a primer on the complex topic. You may also be interested in these previous OurParents posts:

• Seniors Save With New Reverse Mortgage
• AARP on Reverse Mortgages: “Think Carefully”
• “I Don’t” Recommend Reverse Mortgages, Says Financial Analyst
• Experts Warn Against Ill-Advised Reverse Mortgages

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Leigh Ann Otte is a freelance writer who covers finding and paying for senior care for OurParents. If you have any questions about this post or need help finding senior-care options for a loved one, call 1-866-483-4896 to speak with a care advisor in your area.