Older homeowners often view reverse mortgages as financial booby traps. Many find it too hard to know how much of their wealth will remain once the loan stops compounding.
A major wildcard in that equation is the average effective interest rate over the life of the loan. Seniors who endured the early 1980s carry a deeply imprinted fear that rates could again rip higher and deplete equity with alarming velocity.
That brings up an interesting question for those contemplating a reverse mortgage: wouldn't it be comforting never to have to worry about the interest rate again?
Bloom Finance asked this very same question.
You don't have access to this post on MortgageLogic.news at the moment, but if you upgrade your account you'll be able to see the whole thing, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.
