Reverse Mortgage

Refinancing Your Traditional Mortgage with a Reverse Mortgage

Many people think that a reverse mortgage can only be obtained when the home has no current mortgage, but this is not the case. In fact, when considering reverse mortgage pros and cons, one of the most notable reverse mortgage benefits is that it can be used to pay off the existing mortgage. This allows you to eliminate your monthly mortgage payment obligation and, in cases where there is sufficient home equity, receive additional funds.

Reverse Mortgage Requirements

When homeowners are researching reverse mortgage pros and cons, one of the most common 'disadvantages' they will see is the fact that the home owner(s) is responsible for keeping real estate taxes, homeowners insurance, and home repairs up to date. While these obligations exist for any homeowner, most traditional mortgages feature an escrow account to cover the expenses of the tax and insurance, and the home owner(s) may not be used to handling them directly. If you currently have an escrow account to pay your taxes and insurance, it important to remember that the reverse mortgage will not have this feature and you will be responsible for ensuring that they are kept current.

You may find these other reverse mortgage refinance pages beneficial:

• Learn the benefits of refinancing your current reverse mortgage.
• Discover how you can benefit from financing your home with a reverse mortgage.