There are many reverse mortgage benefits that get overlooked today. First, there is the old reverse mortgage fear that somehow you get a reverse mortgage and then soon after you lose your home. That could not be farther from the truth. If anything, it actually solidifies your situation with your home.
The first thing to know is that you will not even qualify for a reverse mortgage until the age of 62.
Here are some of the reverse mortgage benefits:
- It allows you to tap into the equity that you have sitting in your home and use that cash for your monthly living expenses if needed.
- You only accrue interest on the amount that you draw and not the total amount for which you were approved.
- If your home declines in value to the point where your reverse mortgage balance is larger than your home value, you are still safe and secure in your home.
- Your heirs are protected. If your home declines in value, then they do not owe the difference.
- Your heirs can still keep the home afterwards by paying off the reverse mortgage or refinancing the home.
- The amount you draw from your loan is tax free. That's right, there are no reverse mortgage taxes.
- You can get approved for a large portion of your equity but then only take out what you need and when you need it.
Are you still afraid? Don't be. The reverse mortgage benefits outlined above should be enough to at least make you even more curious about the process, the costs, and even the terms and rates. To find out, Read more about reverse mortgages and their benefits. HERE.
While you read the rest of the content on my reverse mortgage page of my web site, you will be able to contact a lender who can help walk you through the process, answer your questions and then you can decide whether a reverse mortgage is the right solution for you.
Hey.. I almost forgot! The title indicated "pros and cons". Well, I am having a tough time coming up with a negative here. If I think of one I will let you know.
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