What are the benefits of having a reverse mortgage?
The main advantage of Reverse Mortgages is that you can eliminate your traditional mortgage payments and/or access your home equity while still owning and living in your home.Click to see full answer. Herein, what is the downside to a reverse mortgage? CONS of a reverse mortgage The loan balance increases over time as interest on…
The main advantage of Reverse Mortgages is that you can eliminate your traditional mortgage payments and/or access your home equity while still owning and living in your home.Click to see full answer. Herein, what is the downside to a reverse mortgage? CONS of a reverse mortgage The loan balance increases over time as interest on the loan and fees accumulate. As home equity is used, fewer assets are available to leave to your heirs. Fees may be higher than with a traditional mortgage.Likewise, what is a reverse mortgage pros and cons? Pros and Cons of Reverse Mortgages The money is tax free. Rather than income earned, a reverse mortgage is considered a loan so the IRS can’t get its sticky fingers on it. And a reverse mortgage will not affect your Social Security or Medicare payments. Likewise, is it ever a good idea to get a reverse mortgage? Taking out a reverse mortgage is almost never a good idea — here’s why. Reverse mortgages are loans available to people over 62 who would like to borrow against the value of their homes. They are often exorbitantly expensive — requiring additional premiums and fees.Do you have to have good credit for a reverse mortgage?One of the many advantages of reverse mortgages is that you do not need good credit to qualify. The Federal Housing Administration (FHA) insures almost all reverse mortgages, which allows lenders to loan money to those who meet the age and home equity requirements, regardless of whether they have excellent credit.
