2220 Reverse Mortgage Hidden Danger
From Money Talks ScriptWiki
Money Talks News
- PKG TRT 1: 30
- Feed Date: 7/25/07
- Script 9
- Supers:
- Al Giallorenzi, reverse mortgage borrower :10 - :22
- David Levitt, reverse mortgage lender :31 - :36
- Stacy Johnson CPA 1:13 – 1:30
Tease: I’m Stacy Johnson. Is having enough retirement income an impossible dream? Not maybe with the help of a reverse mortgage. I’m going to explain how to find one and what to look for, coming up on Money Talks.
Suggested Anchor Intro: As baby boomers age, they’re going to find new ways to live well in retirement…ways that probably wouldn’t have occurred to their parents. One example? Reverse mortgages…money reporter Stacy Johnson explains.
VO 1 Al Giallorenzi is a 74 year old retired bricklayer , now turned professional harmonica player. And his reverse mortgage? Well, it’s music to his ears.
SOT “With the help of a reverse mortgage, I’m doing very well financially. I mean, I can travel, I can do anything I want, financially and it doesn’t hurt me one bit.”
VO 2 His reverse mortgage lets Al borrow against his home. The money’s repaid whenever it’s sold: before or after his final curtain call.
SOT “I often say with a regular mortgage you pay as you go, with a reverse mortgage you pay when you go.”
VO 3 That’s Al’s lender, another guy who sings the praises of reverse mortgages: he’s done them for thousands of people. But there’s something potentially sour about these notes: High fees.
VO 4 Take Al’s house for example: he got a $120,000 credit line. But the total fees he’s paid to do it? $12,000. That’s 10%.
VO 5 Like all reverse mortgage borrowers, Al got mandatory counseling before he took out this loan. And it was all properly disclosed. But like any mortgage, a reverse is complex.
VO 6 Complex and high cost doesn’t make them evil: they can be the perfect play for many seniors. You just have to be careful.
Standup Bottom line? Having enough retirement income doesn’t have to be an impossible dream. A reverse mortgage can actually take you there. But make sure you understand what you’re doing and make sure to negotiate those fees as low as possible. For MT, I’m SJ.
Suggested Anchor Tag: There’s plenty of free information available on reverse mortgages. Just go to our website at _____________ and click on the Money Talks link.
