No. of Recommendations: 6
everse mortgage is OK as long as they do not outlive the payments.

Generally speaking one can not outlive the payments from a reverse mortgage. Most reverse mortgages are set up to pay a lifetime income stream. Nor would the decline in value of a home affect a reverse mortgage, the income stream is determined by the value of the residence and the owner(s) age.

That again would leave them with no assets and this time with large debts.

A reverse mortgage is not like a line of credit or a home equity loan. Generally there is only one per residence, the origination fees would be onerous.

A reverse mortgage would not force elderly people from their homes, they are guaranteed a lifetime income stream based on the value of their home. Plus if the money they have received is less than the value of the house then the heirs often have the opportunity to repay the mortgage or sell the house pocketing the remaining equity.

Look for this segment to evolve. It is better to stick with nationwide companies such as Wells Fargo. www.wellsfargo.com

buzman
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