Strong Tower

6 Facts to Know About Reverse Mortgages


Financial advisor and founder of Central Pennsylvania based wealth management firm Strong Tower Associates, Ash Toumayants, spoke to U.S News contributor Debbie Carlson about reverse mortgages, which allow homeowners to cash out equity but can have some negatively associated costs. Instead of seeking a reverse mortgage, Toumayants recommends selling a home that is unaffordable and living within your means by buying a less expensive home.

reverse mortgage

“Even if you do the reverse mortgage, you still need to pay property taxes, and you must maintain the property, otherwise (the bank) can take the house,” Toumayants says. “You can’t get a home equity loan for a kitchen; that’s over because most of the time there’s not enough money. Those are significant concerns. It eliminates flexibility and choice, so you can’t, say go live with the kids (and keep your equity). It’s a privilege to have choice and flexibility. That’s what being wealthy means.”

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