One thing I always flag: property taxes and insurance are still on you. Some folks forget that and get caught off guard.
That’s a big one. When we looked into a reverse mortgage a few years back, the lender made it sound almost too easy—until we dug into the fine print about ongoing costs. We ended up using it to update our kitchen and bathrooms, but only after making sure we could handle those taxes and insurance long-term. It really does come down to planning ahead and not just focusing on the lump sum you get upfront. Family conversations helped too, even if they got a little heated at times...
Funny how those “heated” family talks always seem to pop up around money, right? I’ve seen folks get so focused on the kitchen reno or that dream vacation, they forget about the boring stuff like taxes and insurance. Did your lender walk you through what happens if you fall behind on those? I’ve had clients surprised to learn you can actually lose the house if you don’t keep up. Not trying to scare anyone, but it’s wild how glossed over that part can be...
Reverse Mortgages: Not Just for Emergencies
I get where you’re coming from about the “boring stuff” getting overlooked. But honestly, I think lenders do mention taxes and insurance—it’s just that people tune out once they hear “monthly payment” or “equity.” Maybe it’s information overload? When I was going through the process, my lender handed me a stack of disclosures, but it was buried in legalese. I had to dig to find out what would actually happen if I missed a payment.
That said, I’m not convinced reverse mortgages are as risky as some make them sound. Sure, you can lose your house if you don’t pay taxes or insurance, but isn’t that true with any mortgage? It feels like reverse mortgages get singled out for this when really, it’s just basic homeownership responsibility. Maybe the real issue is how complicated everything gets—one wrong assumption and suddenly you’re in trouble.
I do wish there was more plain-English guidance upfront. Would’ve saved me a few headaches...
You’re right, the fine print is a nightmare. I’ve sat with clients who had no idea they’d be on the hook for taxes and insurance after closing—despite signing all those disclosures. It’s not that lenders are hiding it, but the way it’s presented just doesn’t stick. I do think reverse mortgages get a bad rap, though. Like you said, if you stop paying property taxes on any home, you’re in trouble. Maybe the bigger issue is that people assume “no payments” means “no responsibilities,” which isn’t really the case. Ever try explaining that to someone who’s already overwhelmed? Not easy...
That’s exactly it—“no payments” gets tossed around like it means you can just forget about the house. I’ve seen folks blindsided by the tax bills, thinking the reverse mortgage covered everything. It’s not a magic fix, but it’s not evil either. Just wish the industry would stop sugarcoating it.
