Summary of Reverse Mortgages

Because they are relatively new on the scene, reverse mortgages have room to evolve. Features and uses will change over time. For example, some of them have reduced their upfront costs, though this results in less money available for you to borrow.

Watch out for scams

Some salespeople like to target the elderly. Some may pressure them to buy other financial products popular among the elderly, such as annuities, along with a reverse mortgage. Still others try to persuade them to spend money on home products and services under the idea that a reverse mortgage will provide an easy source of funds for them. In situations like these, it pays to be educated and to walk away from pressure. Consumers should shop around for the best deal with the best options, costs, and features.

The Federal Trade Commission publishes valuable consumer information on its page at http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea13.shtm.