Reverse Mortgage: 7 Reasons It May Not Be The Right Choice For You

By
Services for Real Estate Pros with 206 715 1642 Notary l ApostilleAgent

The idea of Reverse mortgage basically is- converting your equity in your home into an income flow, until you and your spouse are no longer, or have moved out the house.

During this time period you make no mortgage payments.  But interest accrues on all the  amounts you have taken out.  At the end if you did not pay off the loan balance bank takes possession, and title of the house attempting to satisfy your reverse mortgage loan that they let you have. In this situation you or your heirs are not liable for the remaining debt.

 

Is reverse mortgage suits for everyone? Absolutely not. I am not a certified specialist to advise you. You need to talk with a reverse mortgage professional and let them explain to you all the details of reverse products and programs. Before you jump into decisions, digest the details and make a wise decision.

 

What are the negatives of reverse mortgage. Here are the seven negatives that come to my mind:

 

  1. It is an expensive proposition, the fees and interest rates to be ridiculously  high. If you do not need the money to meet your monthly expenses (like food, utilitie, medicine etc,) getting into a reverse mortgage obligation is not the right thing.

  2.  The equity that you had in your house will become smaller and smaller due to interest and fees charged by the bank.

  3. Your reverse mortgage loan can be in default if you did not keep with the payments for property taxes, insurance payments, repairs, etc.

  4. Your heirs, like children and grandchildren, who may be looking forward to you giving money to them as part of inheritance can be in some cases disappointed.

  5. Subsequent to your death, your reverse mortgage lender will take over the property unless the heirs of the estate take steps to satisfy the debt in full.

  6. Your loan balance will snowball to become larger and larger from monthly interest charges being added over the years.

  7. There will be the tendency to draw money from your reverse mortgage available loan balance for unnecessary travel  and other non-emergency items.

 

Don't leap on the reverse mortgage vehicle without bearing in mind how a reverse mortgage loan may impact the overall finances.

 

 

Posted by

SEESAN, a Licensed Real Estate Agent, Commissioned Mobile Notary specializing in Trust/Estate Planning Signings and Reverse Mortgage Loan Signings for seniors. He uses his expertise, knowledge, and experience to help numerous seniors to maintain their security, independance, and dignity. He is a blogger, a seniors advocate and has many years experience in mortgage loan servicing and real estate industries and has  an MBA in business management. He loves what he does and receives much joy with the services  he provides and benefits seniors and their families receive from them. His services also help reverse mortgage lenders to improve the customer experience by offering excellent signing services. He understands the intricacies of a reverse mortgage transaction, the process, and the documents. He will be your trusted partner to build a signing experience customized for lenders' customers.

One of the primary reasons that lenders for utilizing him  is to provide a convenience to the borrower.  He  makes it possible for the borrower to sign their loan documents wherever it is most convenient for them.  This can be practically anywhere, but it is usually in the comfort of their own home.  This is especially beneficial for Reverse Mortgage borrowers. He  prints the documents, takes them to the borrower, gets the required signatures, then promptly delivers the loan documents.  He takes care of everything for the borrower as well as the lenders. And when he's not covering the reverse mortgage industry, SEESAN enjoys politics, news, movies, comics, soccer games and life with his wife.

He can be reached at seesan2002@gmail.com | cell 206 715 1642 |
HisProfiles: SeesanRealestate  | SeesanMobileNotary

-----------------------------------------
Disclaimer The materials presented in this article and blog are for informational purposes and are not intended and should not be considered legal or financial advice or a legal opinion on any specific fact or question. There is no attorney-client or other professional-client relationship between the author to this article and the readers or users. The material is as complete and up-to-date as possible as of the date of publication, but the reader should always reconfirm the information with the relevant government agency or consult with an appropriate professional or private attorney or, if unable to afford an attorney, seek free legal or other type of advice.




Comments (0)

Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning. Points to be considered. Certainly not for everyone! The upfront cost is definitely a turnoff. Enjoy your day!

Jun 06, 2020 04:27 AM
Wayne Martin

good point that what you pointed out

Jun 08, 2020 06:22 PM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Thanks for sharing this information. Reverse mortgages are not the answer for everyone and it is important to understand them in advance. Good job

Jun 06, 2020 04:36 AM
Lise Howe

Thanks, Lise. Appreciate it.

Jun 08, 2020 06:24 PM