A controversial and often misunderstood financial topic is reverse mortgages. Most people do not fully understand how a reverse mortgage works, nor do they have a true understanding of the pros and cons that come with one. A reverse mortgage is a way for older homeowners to borrow the equity in their house. Many senior homeowners are struggling to get by right now, and a reverse mortgage serves as a way for them to get access to funds they may need for a variety of different reasons.
If used correctly, a reverse mortgage can be a remarkable financial instrument, but that does not mean it is right for everyone. Host Lou Scatigna, CFP® explains in this segment from The Financial Physician.