Tagdisadvantages

A reverse mortgage can be an extremely beneficial retirement tool for people who are 62 and older and want to tap into a portion of the equity in their home as a way to achieve financial security. As long as you have enough equity in your home, it is not difficult to qualify for a reverse mortgage loan. However, there are several potential reverse mortgage disadvantages to consider. Through a...

Within less than a year both Bank of America and now Wells Fargo have exited reverse mortgage market.  The reasons for the departures may have more to do with infrastructure set-ups, being able to achieve profitability, and getting in compliance with changing regulations from the Department of Housing and Urban Development (HUD) than with the product itself. In the past reverse mortgages received...

Wells Fargo announced yesterday that they are exiting the reverse mortgage business, after more than 20 years of offering reverse mortgages.  While it may not have been the shot heard around the world, it is interesting that Wells Fargo is not alone.  Bank of America announced their exit from the reverse mortgage business in February of this year.  Even more interesting is that both occupied the...

During your pre-retirement years, it’s important to keep your spending and savings habits in check.  When this isn’t enough, a Reverse Mortgage might be right for you. One large problem facing retirees is the realization that the budget that was working for their first 10 years of retirement may not cover costs going into their next 10 years. This is largely due to people living...

CNN Money gave brief plus and minus analysis of reverse mortgages earlier this month (see video below).   View the CNN Money Help Desk segment. While the segment was insightful it was not very detailed in its analysis. So below we’ve provided you a more thorough list of reverse mortgage pros and cons. Pros • Convert a portion of your home equity into tax-free cashflow without having to sell your...