When it comes to a reverse mortgage, like with any loan program, there are pros and cons associated with it. Were for one person the pros can out weight the cons, but not for another, on this page we want to help you see both sides of a reverse mortgage. We have educated people through out Scottsdale and Phoenix on the details of reverse mortgage and if you have any questions please contact us for a detailed conversation on how a reverse mortgage could help your retirement.
Here are some of the pros of a reverse mortgage:
- As the homeowner you get to stay in your home.
- You no longer have to make mortgage payments, and you get money from your lender.
- There are multiple ways to receive your funds. Monthly payments, lump sum and even combinations of those.
- Simple qualification process, that does not require a minimum credit score and no income requirements.
- Your heirs will inherit your home and will be able to keep any remaining equity in the home.
- The loan proceeds are not taxable.
Then some of the cons of a reverse mortgage include:
- The initial fee with a reverse mortgage can be high, with mortgage insurance and the origination fee.
- The loan balance will grow over time and the amount of your heir will inherit over time will get lower the longer the loan is active.
- Medicaid could be affected if the funds are too high.
So if you’d like to further speak with one of our reverse mortgage specialists to see if a reverse mortgage is right for you, please contact us today.
