Partner David Cutner was recently interviewed for an article in FOXBusiness.com, What [Baby] Boomers Need to know About Reverse Mortgages by Casey Dowd, The Boomer.andeuro; In the article, Mr. Cutner explains what a reverse mortgage is, and why people use them. He also explains some of the serious risks of this financial product that people should be aware of – and wary of.
As Mr. Cutner states, The original idea of the reverse mortgage was to give seniors (age 62 and over) the opportunity to access the equity in their homes without selling or incurring the obligation to make monthly payments to a lender. However, at 62, a person could live 30 or more additional years. Borrowing too soon – before the funds are really needed – can have a devastating impact later on should the borrower face unexpected future financial obligations. Reverse mortgages also often come with high costs and high interest rates.
To read the full article, with more information about the benefits and risks of reverse mortgages, click on this link.