Reverse Mortgage Pros and Cons

Are you a senior citizen over the age of 62 that owns your own home? Is money tight, and you are wondering how you are going to make ends meet? If any of this sounds like you, you might want to consider applying for a reverse mortgage. A reverse mortgage is a loan that pays you instead of you making a monthly payment. This may seem like a good idea, however there are both benefits and potential risks of a reverse mortgage.

This article will give you some ins and outs of how a reverse mortgage works and whether or not it might be right for you.

  • What are the Benefits of a Reverse Mortgage?
  • What are the Potential Risks of a Reverse Mortgage?

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What are the Benefits of a Reverse Mortgage?

That is a great question. There are a few benefits of receiving a reverse mortgage payment. First off, the payments can be made in one lump sum, monthly payments, or a combination of both. This can help those that are consistently finding it harder to make ends meet. Another great benefits is that you cannot outlive the reverse mortgage. When it comes to Reverse Mortgage Solutions, as long as at least one of the homeowners still currently resides in the home and keeps up with the property insurance and taxes, the loan will not have to be repaid. Also, in the case of a reverse mortgage, the older you are the better.

What are the Potential Risks of a Reverse Mortgage?

This is also a great question. There are a few potential risks that need to be heavily considered when thinking about applying for a reverse mortgage. First off, the interest rates and fees can be pretty steep when the loan needs to be repaid. You can check out a Reverse Mortgage Calculator to help you figure out what you will be paying in interest and fees when the loan has to be repaid.The loan will typically need to be repaid for a variety of reasons.

First off, if the homeowner or homeowners are now deceased. The executor of the estate, or whomever is responsible for the homeowner’s financial affairs, will need to ensure that the loan is repaid from the estate assets. In addition to the death of the homeowner, there are other reasons why the loan would need to be repaid. If the home were to be sold, for example. This can be difficult, as the loan payments may have been more than the selling price of the home. That means that the homeowner may have a difficult time coming up with the difference. Also, even if you do not sell the home, but it is no longer your primary residence for 12 months, you will be responsible for repayment.

Finally, it is hopeful that you have found this Reverse Mortgage Information helpful. There are several options out there for you. If you are interested in applying, contact your mortgage lender to see what they can offer you.

Review the information laid out on Reverse Mortgage Qualifier

And then fill out the form above to see if you qualify