7/19/2013 – Reverse mortgages can be hazardous to seniors’ financial health (Los Angeles Times)

Jul 22, 2013 No Comments by

Call it the estate-devouring, nightmare home loan you hope to never encounter: a reverse mortgage with a base interest rate of 9.95%, plus a 50% share for the lender of increases in value of the house after closing, plus a 2% “maturity fee” to sweeten the payout even more.

On top of that, there’s a $33,000 mandatory purchase of an annuity by the homeowner that is added to the principal balance and incurs compounding interest while lessening the lender’s future payments to the homeowner.

Read the full article at the Los Angeles Times.

Financial -Landing 2013

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