Suze Orman, on her CNBC show, recently answered a question from a viewer stating that a reverse mortgage is a better option than selling shares. SUZE Orman has warned homeowners and explained the risks of inverted mortgages. I put her in contact with an expert in the United States on reverse mortgages to get her out of there because the truth is that the person never explained to her what she was getting into. In Carol's case, she didn't know that the inverted mortgage company would pay off her mortgage loan.
A reverse mortgage borrower who wasn't properly informed about the loan they were committed to creates serious financial problems and real estate instability, and that's why anyone considering a reverse mortgage loan must fully understand all the details and obligations that come with applying for such a loan. Reverse Mortgage Daily (RMD) is the leading source of news and information covering the reverse mortgage industry. The Reverse Mortgage Resource Center is also a great resource for borrowers to learn about Reverse Mortgage loans. Borrowers who use a reverse mortgage can extend their retirement assets much longer than they could without it. Orman, who describes being contacted by an elderly person who was not fully aware of the financial implications of a reverse mortgage loan, describes to her listeners how important it is to self-educate as much as possible before engaging in a complex financial product.
Ms. Orman added that she is trying to get Carol out of the reverse mortgage since the cold caller didn't explain what she was getting into. His recommendation is that older homeowners consider a reverse mortgage as an emergency fund of last resort during retirement rather than a major part of a retirement plan. In her podcast, Women & Money by Suze Orman, the money guru took the example of a listener named Carol, 71, a widow.
The new partnership has the potential to add reverse mortgage distribution to these local community centers, according to company representatives who spoke with RMD. Reverse mortgages are available starting at age 62, but homeowners are still required to pay other costs, such as property taxes and insurance premiums. Orman explains that he later discovered that the borrower was behind on her utility payments, further complicating the matter. The crux of their concern with the product is that older Americans may use a reverse mortgage as a way to temporarily avoid the inevitable, that they simply can't afford their home.
Coming from a person classified as a money expert, Orman's argument to warn against reverse mortgages is a bit simplistic. This is according to personality and financial media advisor Suze Orman, who spoke last week on her podcast “Suze Orman's Women & Money”.