Marketing Tricks: Reverse Mortgages

Senior Americans are sitting on trillions of dollars worth of equity. Many retired Americans discover their income and savings are not enough to make ends meet. Congress created reverse mortgages during the 1980’s to allow senior homeowners to tap into their homes equity. Assuming their home has any equity.

While commercials by companies who originate reverse mortgages claim it is an easy way to use built up equity there are limits and disadvantages. Like a conventional mortgage, the lender can foreclose on a reverse mortgage.

In this video:

• What is a reverse mortgage? 00:28
• Types of reverse mortgages. 2:26
• How you can use the money. 3:24
• Who owns the home? 3:52
• Reverse mortgage advantages. 4:25
• Reverse mortgage disadvantages. 4:50