Read This Before Signing Your Reverse Mortgage Northern Va. Homeowners

By
Real Estate Agent with The Kathy O'Neal Team - RE/MAX Premier

There are many reasons Northern Virginia homeowners take out reverse mortgages.  However, this option is usually considered by cash-strapped seniors who own their homes and are looking to ease the burden of their golden years.

 

Read This Before Signing Your Reverse Mortgage

The beauty of reverse mortgages is that you'll receive money as long as you are current on property taxes and homeowners insurance.

While this seems like an appealing opportunity, it's a decision that should not be made lightly. Not only is the reverse mortgage complicated in itself, but homeowners make all sorts of mistakes when they're too quick to sign the dotted line.  So if you're considering one, be wary of the common pitfalls below.

Buying Into A Scam

With reverse mortgages becoming a more common option for those over 62, mischievous opportunists are searching for ways to solicit seniors in need of help.  Scammers will take advantage by charging high fees, funneling off parts of payments, creating fake loans or committing identity theft.  Ensure you use a lender approved by the Federal Housing Association.

Confusing Your Payment Options

Reverse mortgages come in many forms.  You can get the amount in one lump sum.  Tenure payments are another option that give you a certain amount each month until you die or move out.  There are also term payments, lines of credit, and modified tenure and term payments.  You need to take the time to research your options and decide which one will be best for you in the long run.

Compromising Government Assistance

There are several government assistance programs that set asset limits on your monthly spending.  These programs provide aid for low-income and disabled individuals.  If any assistance programs financially support you, then be sure to consult their advisers before determining your reverse mortgage plan.

Disregarding Other Options

Reverse mortgages are extremely expensive and many people see them as their only option.  However, there are other alternatives.  Consider taking out a personal loan, downsizing or even taking on roommates.  The Golden Girls always seemed to have fun.

A reverse mortgage could be just the thing to give you the extra cash flow you need and ease your mind.  However, make sure you're consulting a trusted home financing specialist, reading the fine print and have carefully considered all your options.

If you are considering placing your home on the market please remember The Kathy O'Neal Team is here for you.  Let me know how I can be of service to you!

 [The Kathy O'Neal Team serves home buyers and sellers in Northern Virginia, with special focus on Chantilly, Centreville, and the communities of the Western Fairfax region.]

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Rainmaker
177,319
Trisha Bush-LeFore
Preferred Properties Land & Homes - Walla Walla, WA
Providing Realtor Services in the Walla Walla Area

Kathy,

Thanks for the reverse mortgage information. This is a confusing option for people. They definitely should consult a variety of professionals before taking such a wide reaching step.

Sep 23, 2013 02:12 AM #1
Rainmaker
855,169
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Kathy

I have always found the reverse mortgage confusing at best.  Thanks for the info.

Sep 23, 2013 02:37 AM #2
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Rainmaker
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Kathy O'Neal

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