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Saving, Managing Debt, and Budgeting

Home Equity

Why are reverse mortgages controversial?

Reverse mortgages are controversial because many lenders target an older, less informed market of potential clients who may not be aware of the many risks of removing equity from their homes. The fees are very large, compared with other forms of loans, and there is a risk that home prices may not increase, therefore making it very difficult for the loans to be repaid. There are no strict income requirements to obtain this type of loan.



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