Pros and Cons for a Reverse Mortgage
What is the Real Story on Getting a Reverse Mortgage?
A reverse mortgage a one of the best ways to have an income stream on a monthly basis in chosen increments if you have substantial equity in your home and happen to be above the age of 62. This is a great way to have additional income to pay for things that matter to you. Lenders such as LendPlus Financial have a goal to help as many seniors to enjoy more of their lives without the stress of having enough retirement income. This is a prudent way to accomplish that goal. Here are the pro’s and con’s of having a reverse mortgage.
The Pro’s of having a reverse mortgage:
1. A reverse mortgage converts the equity in your home to a cash value which can be distributed to you in several ways on an on going basis. It is a plus to have additional income to support your retirement years.
2. As equity grows over the retirement years, (assuming you have equity growth) this equity gain “off-sets” any portion which you use towards the reverse mortgage allocation or distribution to you. So, that can be a good thing when you pass on and want to give the property to a family member or other person.
The Con’s of having a reverse mortgage:
1. You have to make sure you understand all the details of a reverse mortgage because some less than credible mortgage companies will not fully tell you all the information you need to know. We at LendPlus take it to heart in making sure you now the facts and all the details of the program. To cross check this, you will be given information and an information sources separate from LendPlus Financial so , that a third party talks to you about the program, too! We never want anyone benefiting from this great FHA program unless they fully understand all facets of this program in detail.
2. Remember, borrowers continue to be responsible for their real estate taxes, homeowners insurance and home repairs and will also pay mortgage insurance, too.