Reverse Mortgage Pros and Cons
August 30th, 2008
The demand for reverse mortgages is quickly on the rise in the United States of America. This is partly due to the great advertisement campaigns that lending firms are running to attract homeowners and partly due to the fact that larger populations of seniors are turning 63 years old each year. Just last year, the Senate Committee on Aging allotted time to discuss the aggressive marketing and sales strategies employed by mortgage institutions to lure senior citizens into buying reverse mortgages. If your age qualifies you for this kind of mortgage, it’s best if you find out the reverse mortgage pros and cons before getting one.
A few of the pros include the fact that you can get the full value of your home paid to you in the form of a lump sum or monthly payments. This is a huge advantage for older seniors who have minimal retirement funds. On the flipside though, one of the bigger cons is that you may not have a free and clear home to leave to your heirs if you pass away. The loan would need to be paid off from the sale of the home first. Then, any proceeds left over would go to the heirs.
Entry Filed under: Business