5 Reasons to Avoid a Reverse Mortgage

Over the last several years the reverse mortgage has caught the attention of retirees looking for an income. At face value, it seems like a good idea.

It also seems really simple: You get access to the equity in your home and the bank makes a mortgage payment to you. If that doesn’t make sense, keep reading. It gets worse. A reverse mortgage can have detrimental effects at a time in life those seeking it can’t afford bad luck.

There are 5 main reasons a reverse mortgage should be avoided at all costs. Most people don’t know this type of income stream is actually a loan against your home’s equity that has to be paid back.

Think twice—here's why:

#1 You’ll Pay High Fees Since a reverse mortgage is actually a loan, expect to have loan-related fees. How is it a loan?