In weeks past we reported on the disconnect between reverse mortgage borrowers, their children and the industry. However, it looks like U.S. News & World Report may have a mortgage tool to help bridge that disconnect.
The concern came as critics believed reverse mortgage pitches needed to be refined. They argued that borrowers and their children didn't quite understand how HECM's worked, causing a bit of disconnect.
"U.S. News & World Report rolled out a special reverse mortgage resource last week, walking borrowers through the potential benefits and risks associated with the loans," according Reverse Mortgage Daily.
"Among the benefits, the publication lists the ability to access cash to pay off debts and fund everyday household expenses, the fact that borrowers maintain home ownership, and flexible repayment options. Drawbacks, according to U.S. News & World Report, include the origination and maintenance fees, growing interest, tax and insurance costs, and the potential for a smaller inheritance for children."
The resource also looks to alert borrowers about ARM features in reverse mortgages that help borrowers gain a little more control on how their equity is spread out.
To learn more about this new resource for borrowers, click on the image above.