Should You Get a Reverse Mortgage Because a Celebrity Endorses It?

Actor Peter Graves of “Mission Impossible” has signed on as the spokesperson for reverse mortgage lender American Advisors Group, according to an article at Reverse Mortgage Daily. While you may admire Graves as an actor or other celebrities who endorse products, that doesn’t mean you should sign up for a reverse mortgage or other financial products because of a commercial. Rather than go by the popularity of a celebrity, it’s important to look at the facts when evaluating financial products like reverse mortgages.

Reverse Mortgages and Endorsements

Recent Federal Trade Commission rule changes require celebrities to actually use the products they claim to use in endorsements, as discussed in a Consumer Reports article. But it can be tricky because even though celebrities may recommend that people go out and sign up for a reverse mortgage or other product, they may just be expressing their opinion. They may not necessarily claim to use that type of loan themselves.

What to Look for in a Reverse Mortgage

Instead of focusing on celebrity endorsements when shopping around for a reverse mortgage, consider the following things:

• How do you expect a reverse mortgage to help your financial situation?
• Are you just jumping on the reverse mortgage bandwagon because you’ve seen others take out such loans?
• Have you worked with a reverse mortgage counselor who took the time to really explain how these loans work?
• Have you compared several reverse mortgage quotes to find the best deal?
• Can you afford the fees involved with getting a reverse home loan?
• Can you afford to cash out your home equity?

Getting a reverse mortgage is a big decision that affects your finances for years to come. These loans can be a useful tool for finding more income. But never make the decision to sign up for a reverse loan or other financial product just because it is endorsed by a famous celebrity.

This entry was posted on Monday, October 19th, 2009 at 7:55 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.