Article by Joe Bailey
Having a reverse mortgage can mean the difference between living living day to day or living well. But, before you sign up for a reverse mortgage, you must also understand the advantages and disadvantages of a reverse mortgage. This article focuses on the disadvantages of a reverse mortgage. Let’s get the bad part out of the way first. So, let’s first take a quick review of a reverse mortgage and then take a look a the disadvantages.So, what is a reverse mortgage?A reverse mortgage is a home loan where you take some of the equity in your home and convert that equity into cash. As opposed to a regular mortgage, a reverse mortgage pays you! Sounds great, it’s almost like winning the lottery. Ok, now that we know the good news, here are some of the disadvantages of a reverse mortgage to consider: Reverse Mortgages are expensiveNothing is free. With each reverse mortgage there are fees involved. Sometimes these fees can be high because they are based on the home’s value. And, the amount of money you owe grows larger over time based on the fees and interest rates. So, you must consider if the amount of fees is to high. But, if you’re considering selling your house to survive, a reverse mortgage is still a wonderful solution, after all, you are getting money back. So, a lot of times, the money in hand is worth it.Reverse mortgages will affect the inheritance you leave behindWhen the home is sold, the cash received from the reverse mortgage, interest and fees must be repaid. But, the remaining equity in your home will go to your heirs. Important: your heirs, will not be required to pay more than the home is worth on the maturity of the loan when it is sold. However, if your heirs do wish to keep the home for sentimental reasons, etc., they will be responsible for the full amount owed which can be more.I don’t want to stay in my home foreverBecause of the costs linked to a reverse mortgage, there may be more inexpensive options. So, consider other options if you do plan on moving in the near future.A reverse mortgage may affect eligibility for some benefits.A reverse mortgage will not affect your social security or medicare benefits. But, the money received could impact your Medicaid benefits. So, if you are on Medicaid you should make it a requirement to contact a Medicaid expert in your area. If you don’t you may risk losing Medicaid benefits! Also, check on the affects on any other benefits such as Supplemental Social Security Income (SSI) and Medi-Cal.
About the Author
Read more of this >>
Article by Juhani Tontti
Have you heard, that seniors can have difficulties to qualify to Medicaid, MediCal or SSI, if they have the reverse loan? Or that it is difficult to get reverse mortgage, if a senior already has Medicaid, MediCal or SSI? Read the tips about reverse mortgage medicaid.
It is important to understand, that the authorities, who handle the reverse mortgage medicaid and other social security applications must have strict rules concerning the amounts of cash money and the assets. And that a senior does it wise, when he knows about these rules and can avoid the small but important mistakes.
Read more of this >>
Question by Cameron D: Reverse mortgage help?
Can anyone tell me how to work the following question out-
An elderly couple borrow $ 40000 with interest compounded monthly at a rate of 9% per annum. How much will need to be repaid on this loan 15 years later?
Best answer: Read more of this >>
Article by Mario Vargas
Manufactured Homes Reverse Mortgage<div>
Usually Reverse Mortgages are not applicable to manufactured home or co-operative apartments. But there are a few lenders who offer reverse mortgages on manufactured homes like Reverse Mortgage Lenders Direct. Equity needs to be available for the Manufactured Loans to be approved – simply take the amount that your home can appraise for and subtract.
HUD defines a manufacture or mobile home as a structure that is transportable in one or more sections, and is designed and constructed to the Federal Manufactured Construction and Safety Standards and is so labeled. FHA guaranteed reverse mortgage on manufactured or mobile homes has the following criteria and features unlike a standard home equity line of credit.
Read more of this >>
Article by Amber Ladlie
Reverse mortgage loans are somewhat controversial loans. While most experts recognize the obvious benefits that these loans offer, some also warn consumers to tread carefully. The decision to obtain a loan is not one that should be taken lightly. While seeking reverse mortgage information, consumers need to make sure that they fully understand both the benefits and disadvantages of these loans.
Honest Reverse Mortgage Information: Disadvantages Every Borrower Must Consider
Read more of this >>
Article by Juhani Tontti
As a senior have you ever pondered, where can you get an extra cash if it is a must? Have you thought both the reverse mortgage loan and the home equity loan? Have you seen it difficult to judge, which one is better?
Of course a personal situation will dictate, which loan alternative to use. This article tries to describe the benefits and features of both loan types and leaves the decision making to the reader. If the financial situation is clear, it can be extremely easy to make a decision.
Read more of this >>
