Mortgage2USA.com
The Largest Non-Profit Mortgage Portal on the Internet.
Reverse Mortgages
Pros & Cons
Information contained on the site has been obtained from recognized sources believed to be reliable but has not been verified by us and cannot be guaranteed for its accuracy or completeness. Every effort has been made to keep all information current and factual and we invite visitors to our site to bring any errors or unfair practices to our attention. Mortgage2USA.com is not a mortgage banker or broker and does not have any financial interest in any of the financial companies or sites listed on any of our pages.This site does not buy or sell any securities and nothing on any of our pages should be considered an offer to buy or sell any securities.
2003 - 2011 Mortgage2USA.com
Pros
The following Professionals are involved in today's Mortgage Markets :
Table of Contents
Allows the homeowner to stay in the home permanently.
Pays off existing mortgages on the home.
Simple to qualify for because credit score and income are not considered.
No monthly payments are due for as long as the homeowner lives in the home.
The homeowner receives payments on flexible terms :
Credit line for emergencies.
Monthly income.
Lump sum distribution.
Any combination of the above.
A Reverse Mortgage can not get " upside down " so the heirs will never owe more than the home is worth.
Heirs inherit the home and keep the remaining equity after the balance of the Reverse Mortgage is paid off.
Proceeds are not taxable.
The interest rate is lower than traditional mortgages and home equity loans.
Cons
The fees on a Reverse Mortgage are the same as a traditional FHA mortgage but are higher than a conventional mortgage because of the insurance cost.
Although Social Security and Medicare are not affected, Medicaid and other need-based government assistance can be affected if too much funds are withdrawn and not spent in one month.
The program is not well understood by most individuals. However, the availability of independent Reverse Mortgage Counseling helps.