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A reverse mortgage may seem enticing if you’re retired and struggling with expenses on a fixed income. However, Reverse mortgages may be less appealing upon closer inspection.
Not only are there a number of reverse mortgage scams, but lenders can also impose high fees and closing costs, and borrowers must pay for mortgage insurance. Reverse mortgages can also come with variable interest rates so your overall costs could increase down the road.
If you think a reverse mortgage might help you stay in your home through retirement, make sure you understand the risks and rewards so you can make a better-informed decision.
What Is a Reverse Mortgage?
A reverse mortgage is a lending option that lets homeowners who’ve paid off all or most of their mortgage to…