Talk of The Villages Florida - View Single Post - Reverse Mortgage Inconvenient Truths
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Old 01-20-2021, 09:49 AM
retiredguy123 retiredguy123 is online now
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Originally Posted by joseppe View Post
There's nothing wrong with Reverse Mortgages if you understand what they are and how they work. There are situations with any financing that can put you into an unfavorable condition. Most of the NaySayers don't understand what a RM is or how it works. I've had many mortgages and one reverse mortgage. Even though I should not have used the reverse mortgage when I did it did not turn out bad for me. In fact it worked out quite well and gave me some advantage over having a regular mortgage.

I find that people tend to label things they don't understand as 'Wrong' or 'Bad' and sadly many other people adopt that opinion rather than taking the time to find out for themselves.

I'm not an advocate of Reverse Mortgage, but I would not say there's anything wrong with them.
I disagree. I understand what a reverse mortgage is and how it works, but I don't think it is appropriate for most people. I think that many people, who buy a reverse mortgage, are sold the product by a commissioned broker, who doesn't fully explain the pros and cons or the alternatives. And, many of those people, who shouldn't buy a reverse mortgage, do so without understanding what it is and how it works. This is also true for many other financial products sold by brokers who want to make a commission.