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Reverse Mortgages

Reverse Mortgages

January 21, 2008 by Lesjak Planning

The American Association of Retired Persons (AARP) has recently reported that lenders offering reverse mortgages are abusing consumers. Homeowners using reverse mortgages borrow against the equity of the house and receive payments from a bank. The loan is repaid with interest when the house is sold or when the borrower dies. The report found that although nearly 50% used the proceeds to pay down home equity debt, a whopping 38% planned on using the payments for extras. Consumers should be very wary of anyone attempting to sell them something and suggesting they use a reverse mortgage to pay for it.

The Advisor - Winter 2008

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Lesjak Planning

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