Should you or Should you Not Take a Reverse Mortgage as a Senior Citizen?
If you are like most people above the age of 62, you are probably thinking of how safe it is to get a reverse mortgage. When one is desperate, and with no much option at their disposal, one may be tempted to fall for the marketing gimmick. keep reading here to know more about reverse mortgages and especially their pros and cons for your consideration. How about getting started with a clearer picture of what reverse mortgages are exactly. Basically, this is a home loan that is specially packaged for retirees aged 62 and above. Basically, this home loan allows you to borrow cash using your home as collateral.
One thing that distinguishes this mortgage from the rest is the fact that you will not be making any payments monthly. Rather, the fees and interests payable will add up to the mortgage balances every month and as the mortgage balance increases, the equity of your home decreases. Ultimately, you get to repay the mortgage when you or your loved ones sell the home. It is important to find more info from a website that talks about reverse mortgages so you can have a clear picture of what you are getting yourself into.
You should know by now that reverse mortgages have their pros and cons which you must explore fully. First and foremost, with or without your reverse mortgage your home maintenance costs must be paid by you; including property taxes, home insurance as well as home repairs. Should you miss out on making any of these payments, your reverse mortgage lender may decide to close out on the home loan which is a nightmare you wouldn’t want to find yourself in.
There are some important considerations you might want to factor in when you are thinking of taking a reverse mortgage. For instance, you might want to explore all other cheaper options that may allow you to meet your financial goals and obligations. You also should consider whether or not you can tap into your home equity now or save it for a rainy day in the future.
Do you have heirs you may wish to leave your home for an inheritance? Unless your heirs have enough savings and assets to secure their future upon your demise, taking a reverse mortgage may mean they will have nothing to inherit. Only then can you make the bold step of deciding whether or not you should proceed with a reverse mortgage.
Citation: official statement