Reverse mortgages a growing concern - Atlanta Journal Constitution- Cash Plus Money Loan
Many retirees report being pleased with their reverse mortgages, but consumer advocates say Congress should be moving more quickly to protect the elderly from unscrupulous lenders who push mortgages that sometimes cost far more than borrowers realize. For the past two decades, the vast majority of reverse mortgages have been offered under the federally insured Home Equity Conversion Mortgages program, which applies to people age 62 or older. An AARP Public Policy Institute study, released in December, found that most people considering reverse mortgages were seeking money to pay off debts, make home improvements, keep up with rising medical costs, cover rising tax and insurance costs, hire more help or just enjoy life more. The study by AARP, the nation’s largest organization for older Americans, found that 93 percent of surveyed borrowers felt their reverse mortgages had had a mostly positive effect on their lives, compared with just 3 percent who said the effect was mostly negative. Witness Carol Anthony, whose 80-year-old mother got a reverse mortgage, described how a salesman talked her mother into getting a reverse mortgage to fund a deferred annuity. If you could easily make the monthly repayments on a home equity loan or home equity line-of-credit, these alternatives are less costly than a reverse mortgage. Find Out More
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