Baby Boomer Retirement: Pros and Cons of Reverse Mortgages for Seniors

Baby Boomer Retirement: Pros and Cons of Reverse Mortgages for Seniors: Many Baby Boomers have decided that they do not want to move to a retirement community or anyplace else when they retire.  Instead, they plan to continue to live in their current home and, if they need extra money, they assume they will just take out a reverse mortgage.

What many people do not realize is that approximately one in ten of these risky mortgages end up in default.  Even when that does not happen, there are drawbacks.  If the reverse mortgage is taken out when the older spouse first reaches age 62, the younger spouse will not be listed on it.  If the older spouse dies first, the younger spouse can be forced out of the home.  In addition, it is possible that the loan principle and interest may have reached the point where there is no equity left in the house.  The bereaved widow or widower is forced from their home, they have lost their major asset, and they may have also lost some of the income that their spouse was receiving.

While reverse mortgages can solve financial problems for many people, for others they can be a nightmare.  Find out what you need to know about reverse mortgages by reading Baby Boomer Retirement: Pros and Cons of Reverse Mortgages for Seniors.