I have been exploring the reverse mortgage plans currently being advertised on television.
As I expected, when dealing with politicians the information they offer is very misleading and can lead unsuspecting homeowners into financial difficulties if they do not first find out all they can about the rules that are not advertised.
The cost of those mortgages is much higher than regular ones and the promise that “You will always own your home” is true in some cases, but very misleading in most cases.
Further, to lure homeowners into such a plan, advertisers always mention former President Ronald Reagan. He had little or nothing to do with reverse mortgages.
It was the late Sen. John Heinz, R-Pa., who proposed the plan and introduced it in Congress. From there, it was the Senate Committee on Aging that sponsored it. President Reagan’s only connection was that he signed the bill when Congress passed it.
The lesson, of course, is to be careful.
Dick Rosenberg, Sabattus
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