Quote:
Originally Posted by dennis in se pa
Reverse mortgages are very predatory. Older people don't want to lose their homes so they bite. Horrendous up front fees (can be up to $15K- $20K) and a 7 - 8 % interest rate! Talk about usury! If you are putting the bank at risk and buying a home with a normal mortgage the rate is 3-4 %. But if you already own your home and want a reverse mortgage it is double! This is BS. And there is no risk for the lender, they only extend the loan to about half the value of the house.
Better to sell and downsize.
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Which is why consumers have free will.
We can say yes ...... or we can say no.
For some people reverse mortgages make a great deal of sense.