Financial Advisors Warn Against Reverse Mortgages
Reverse mortgages can make a lot of sense for many people. They allow homeowners to borrow money against the value of their homes, and the funds don’t need to be repaid until the individuals move.
Financial advisors, however, continue to warn against this option, noting that it often “traps” homeowners into losing out on equity once the home is sold.
A better option, they recommend, is to take out a home equity loan or, in some cases, to sell the house and move somewhere cheaper.
Image via flickr/American Advisors Group