Reverse Mortgages Are About to Get More Expensive
Reverse mortgages allow senior citizens to tap into their home equity in order to create an additional stream of retirement income. While these loans have never exactly been low cost, the government is making some major changes that might result in higher upfront costs and lower borrowing limits for most applicants.
Since most reverse mortgages are federally backed under the Home Equity Conversion Mortgage (HECM) program, it's important for anyone who may be considering a reverse mortgage, either now or in the future, to be aware of the potential impact of the changes, which go into effect on October 2, 2017.
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Source: Fool.com
