I notice that Fred Thompson is now doing “Reverse Mortgage” advertisements. I’ve always thought that to be a pretty cheesy business and am sad to see him doing that.
Why? It allows those 62 years of age and over to take a certain portion of their home equity out and not pay house payments. Potential borrowers have to go through goverment-approved counseling before a loan can be made. Of course it’s not for everyone, but no one loan product is.
There is nothing unethical about reverse mortgages. In fact, it is the only way some older people can obtain the cash to afford to stay in their homes.