What are the Pros and Cons of a Reverse Mortgage?

Overview of Reverse Mortgage Pros and Cons

Advantages (Pros)

• Flexibility:  Monies can be paid to you in the form of a lump sum payment, line of credit, or fixed monthly payment, or a mix
• Security:  Homeowner stays in property for life
• Guarantee:  Loan never goes upside down
• Heirs: They are never responsible for more than the loan amount and keep any extra monies after home is sold
• Interest rates:  Can be lower than many traditional mortgages

Disadvantages (Cons)

• Taxes:   Borrowers still pays taxes, insurance, household expenses
• Costs:  Most Reverse Mortgages have high front end fees
• Eligibility:  Reverse Mortgage income could impact state need based aid programs
• Property:  Property must stay owner occupied
• Occupancy:  Long hospital or nursing facility stays could force sale of the home
• Complicated:  Can be complex─use caution and choose a lender carefully!

Please contact us if you have any questions about the pros and cons of reverse mortgages (800) 801-1375

To learn more online go to www.reverse-mortgage-explained.com

What are the Advantages of a Reverse Mortgage?

Like the roughly 70 million baby boomers about to enter their 60’s and beyond, you may have uncertainty about how you will fund your retirement, especially if you are one of many with a smaller nest egg now due to the ongoing economic downturn.

A reverse mortgage, when understood and applied in the right circumstances can be the answer for you.

If it is right, it can be formulated to provide you a fixed monthly payment, lump sum payment, line of credit, or a mix of your choosing.

If you think this could work for you, understanding reverse mortgage pros and cons should be one of your first steps in deciding if you should leverage one of your primary assets into a retirement income stream.

 

Contact us if you have ant questions about using a reverse mortgage for your retirement.

Reverse Mortgage Explained – Our Mission Statement

Welcome to www.reverse-mortgage-explained.com. We started this web site with the mission to help educate seniors about reverse mortgages, save them time and money in the process, provide the best objective information we can find, and help find great lenders with the highest level of honesty and integrity.

In the process, we have helped a great many seniors get reverse mortgages. To see a few of their comments and how we have helped them, please view the Testimonials from our very satisfied clients.

 

Your Comments are always welcome!  Please let us know if we should add some particular information or content that can help you or others in making the best possible decisions about a reverse mortgage.