As reverse mortgages grow in popularity, inconsistent media coverage makes reverse mortgage pros and cons difficult to objectively assess. Our experience allows us to be a trusted source that can explain the reverse mortgage pros and cons to help you decide if a reverse mortgage is for you. Use our reverse mortgage calculator to find out how much you can receive and evaluate the reverse mortgage pros and cons to determine if a reverse mortgage is the right kind of loan for your needs!
Reverse Mortgage Pros:
- Allows you to remain in your residence with no monthly mortgage payment.
- Required no repayment for as long as you occupy the home and abide by the loan terms.*
- Enabled you to supplement a fixed income and cover daily expenses.
- Gives you the option to use your equity however you choose.
- Does not subject you to additional income tax.
- Does not base eligibility upon your income or credit history.
- Will not cause you to be liable for any amount above your home's value.
- Features interest rates that are comparable to traditional and home equity mortgage rates.
- Requires pre-loan counseling to ensure that you can make an informed decision.
- Protects you from excessive "junk" fees, due to heavy governmental regulations.
- Has no prepayment penalty.
- Allows you to finance your up front fees so that they are not paid out of pocket.
Reverse Mortgage Cons:
- Can have higher up front fees than other types of financing.
- May reduce the amount of equity left to your heirs.
- Has the potential to impact need-based government assistance benefits.
- May become due and payable in full if certain terms of the mortgage are violated.*
- Does not allow interest accrued to be deducted on taxes until the loan becomes due.
- Could prevent you from having equity to liquidate in the future.
Once you consider the reverse mortgage pros and cons, contact us for a direct quote.
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