Latest Reverse Mortgage Spokesman, Tom Selleck Emmy and Golden Globe award-winning actor Tom Selleck became the newest celebrity spokesman for reverse mortgages in June 2016 when he began appearing in TV commercials for a national reverse mortgage lender, American Advisors Group (AAG).

The Bottom Line A reverse mortgage can allow an older homeowner to tap the equity that has built up in their hone over the years without having to sell it or move out. However, these loans can be expensive and also have some disadvantages for the borrower's heirs, so it's worth considering the alternatives.

Yes, Tom Selleck is a paid spokesman. Lesser-known celebrities such as Bill Medley from the Righteous Brothers did a reverse mortgage commercial, and so did 1950s pop singer Pat Boone.

Reverse mortgage pros

• You can better manage expenses in retirement.
• You don't have to move.
• You don't have to pay taxes on the income.
• You're protected if the balance exceeds your home's value.
• Your heirs have options.
• You have to pay for it.
• You can't deduct the interest from your taxes until you pay off the loan.

In a lawsuit filed late last week in the U.S. District Court of California's Central District, the CFPB alleged that Irvine, California-based American Advisors Group (AAG) sent borrowers deceptive and inflated home estimates in direct mailers to convince consumers to take out a reverse mortgage.

Tom Selleck There's a Better Way to Measure TV & Streaming Ad ROI AAG Reverse Mortgage and Tom Selleck interview people who benefited from getting a reverse mortgage. If you are a homeowner 62 years old or older, it invites you to call to learn more.

A big downside to reverse mortgages is the loss of home equity. Because you're not paying down your reverse mortgage balance, you'll make less profit when you sell, or limit your borrowing power if you need a new loan. You'll pay high upfront fees.

Does AARP recommend reverse mortgages? AARP does not recommend for or against reverse mortgages. They do however recommend that borrowers take the time to become educated so that borrowers are doing what is right for their circumstances.

Fewer than 1% of eligible homeowners have a reverse mortgage, according to a Brookings Institution report. The word “reverse,” which conjures images of retreat and defeat, might be the problem. Or maybe it's “mortgage,” which is no one's favorite financial product.

Conclusion: While reverse mortgages are not the solution for every senior, they may be a savior for cash poor seniors whose income is insufficient to cover their living expenses.

Specifically, the CFPB alleges that AAG: Deceptively inflated home values: In marketing their reverse mortgage products, AAG provided consumers with inflated estimates of home values to entice them to enter into negotiations to open a reverse mortgage.

You can get out of the reverse mortgage without penalty by refinancing into a traditional loan, paying off with other funds, or simply selling your home. If you don't like the balance rising, repay each month towards the interest charges and protect your equity position. You're in the driver's seat!