Reverse mortgages

The word on the street has been that reverse mortages are better deals today than they were years ago.

I just saw an illustration for a reverse mortgage on a $380,000 home that included upfront fees, including mortgage insurance, of $16,279. A better deal? Better than a poke in the eye with a sharp stick.

As a last resort, maybe a reverse mortgage is OK for someone who absolutely doesn’t want to move but has no income and no assets other than the home. No matter what Fred Thompson tells you on TV, these are NOT good deals.

–        John S. Davis