Isn’t a reverse mortgage a “last resort” loan intended primarily for low-income homeowners?
Some experts do place reverse mortgages in the category of “last resort” loans primarily because the associated costs and fees tend to be very high. These experts advise seniors to first consider other options such as selling the home, home equity line of credit, or tapping other savings. On the other hand, the newer generation of retirees is more accepting of using home equity for living expenses. More and more reverse mortgages are being taken out by homeowners wanting to travel, help pay for grandkids’ college, or just improve their living standard. Bottom line: No, reverse mortgages aren’t just for low-income homeowners or homeowners facing a financial emergency.
