What Are Suze Orman's Concerns About the Fees and Costs Associated with Reverse Mortgages?

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  1. Origination Fees: Suze cautions against the origination fees tied to reverse mortgages. These upfront costs can eat into the equity of your home, impacting your financial legacy.

  2. Interest Rates: One of Suze's primary concerns is the interest rates linked with reverse mortgages. These rates can accumulate over time, potentially diminishing the inheritance you wish to leave for your loved ones.

  3. Mandatory Insurance: Another aspect that worries Suze Orman is the mandatory insurance required for reverse mortgages. While it offers protection, it adds to the overall expenses of the loan.

  4. Servicing Fees: Suze advises borrowers to scrutinize the servicing fees associated with reverse mortgages. These ongoing charges can erode the benefits of accessing home equity.

  5. Closing Costs: Closing costs are a significant consideration for Suze. These expenses, including appraisal and title fees, can significantly impact the overall cost-effectiveness of a reverse mortgage.

In essence, Suze Orman advocates for thorough research and careful consideration before delving into the realm of reverse mortgages. While they offer financial flexibility, the associated fees and costs demand a discerning eye. By understanding these concerns, individuals can make informed decisions that align with their long-term financial goals.


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