All those commercials and advertisements claiming how you can retain control of your own home while enjoying the "good life" - well, for a short time anyway
That is until you realize the full impact of your decision - WoW, are you in for a huge shock! - Sky high interest rates charged on any money you were "loaned" - due if you ever decide to sell your home, or when your executors administer your "Will" - and your "Heirs" realize how you were duped out of a significant portion of your real estate assets - simply because you wanted a few extra dollars in your pocket
Those dollars don't go very far these days when you start looking at all those bills coming into your mailbox - within a not too distant future, taxes and everyday expenses will leave you back where you started (actually no, much much worse!)
Look Before you Leap
Before you took out the reverse mortgage (which seems to be targeted at seniors especially), you likely owned your own home -- now you don't - you think you do, but not really - the "lender" has first claim on any money that is owed to them - so, if you still need money (and you've used up the sum from the reverse mortgage), you now have no choice but to sell your home and move in with your kids (or find an apartment)
This is the moment that the lender is rubbing their hands with glee! they get back the dollars they loaned you in addition to a large interest payment - so much money that you could end up relinquishing a significant portion of the sale value of your home - add the real estate agents commission (if you have one), and legal fees - and moving expenses - and before you know it, your lifelong investment has been significantly eroded - you / your heirs were gouged by the lender, leaving you / your family with a paltry portion of your original assets
Knowledge is a Valuable Commodity
Don't get caught up in this scheme to transfer your wealth to a person or company that is already overflowing in cash.
If the time ever comes that you need money in your bank account, sell your home privately or through an agent - Keep those hard earned dollars (as much as possible) in your family treasure chest - your children, grandchildren, all the generations to come will benefit from your foresight and be eternally grateful (at least we can hope) and when it's time to leave this life, you'll truly rest in peace - and your family will cherish your memory with the knowledge that you did everything you could to help further their own financial security
