Reverse Mortgages Called Last Resort

Summary


NEW YORK -- The Financial Industry Regulatory Authority this month urged senior citizens to carefully weigh their options before using reverse mortgages to tap their home equity for additional retirement income.

The group, formed by a merger of the NASD and some regulatory functions of NYSE Group Inc., warned that a reverse mortgage -- an interest-bearing loan secured by the equity in a home -- can jeopardize their financial futures.

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Extract


Reverse Mortgages Called Last Resort

With a reverse mortgage, a bank makes payments to a homeowner instead of the homeowner making paymen...

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