Reverse Mortgage Loans

When it comes to a reverse mortgage loan, there are many different reverse mortgage loan pros and cons. Just like any other loan you get, there will be both good and bad things associated with it. Deciding whether or not the benefits out way the cons solely depends on you and your particular situation.

First off, there are many reverse mortgage pro’s for you to take into consideration. First off, getting those monthly payments is a benefit all in it’s own. It can get you through Bill payments when other funds are low or just for everyday necessities. Also, as long as you remain living in your home, the loan is never due. Keep in my mind, you must keep your home up to FHA standards.

Furthermore, there are also some reverse mortgage cons to think about as well. For example, recieving those monthly payments may be a reverse mortgage pro, but it does pose a potential con. Getting that payment tacks on more money to your already outstanding mortgage, which may later leave less inheritance for your family. Also, of your on medicaid and your monthly payments are to high, it can effect your Medicaid benefits.

There are several reverse mortgage pros that can benefit seniors who choose this option. One of the reverse mortgage pros is that repayment is not required unless the home is sold. Reverse mortgage pros involve no income tax additions because it is considered an advance on a loan. Another reverse mortgage pro is no worrying about being evicted from the home. In accordance with the terms of HUD, the reverse mortgage pro is that homeowners are guaranteed to be able to stay in their home until they decide to move. Other reverse mortgage pros include eligibility that is not based on credit history, ratings, or equity. More reverse mortgage pros include the necessity to attend pre-loan counseling to ensure an informed decision is being made.
Another great reverse mortgage pro is the guarantee that family members or heirs to the home will not be responsible for debt. Additional reverse mortgage pros are that HUD will carry out the difference if the home value is less than the owed amount. Reverse mortgage pros also include protection from high government regulations that cause extravagant fees. Reverse mortgage pros for seniors also allow any up front fees to be easily financed to avoid paying out of pocket. Reverse mortgage pros allow seniors on a fixed income to cover daily needs and supplement the income. Reverse mortgage pros also allow equity options to be chosen by the homeowner. More reverse mortgage pros are no prepayment penalties and comparable interest rates.
While there are many reverse mortgage pros, there are also cons; therefore, seniors should always be informed of their decision.

 

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