Reverse Mortgage

Reverse Mortgage Pros and Cons: The Benefits

• 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 Pros and Cons: The Implications

• 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.

These pages may also interest you:

• Learn more about purchasing a home with a reverse mortgage!
• Learn how to refinance your current reverse mortgage!
• Read about reverse mortgage common misconceptions and discover the truth about these loans!