When it comes to a reverse mortgage, wise consumers weigh the advantages and disadvantages of a reverse mortgage prior to signing on the dotted line.
Let’s start on a positive note, you could do what most borrowers do and opt for the reverse mortgage line of credit. Just think about how you would then be able to draw on the loan whenever money is required for daily living expenses, medical bills, prescription costs, home repairs, etc. A reverse mortgage could really enhance your retirement years including in-home care expenses in later years.Furthermore, your reverse mortgage income does not affect regular Social Security payments or Medicare benefits. And lenders cannot foreclose on the loan for the life of the borrower.
Okay, that’s all well and good but how do I turn the major disadvantages of a reverse mortgage into a positive? It’s all in the perspective. For every negative there is a positive to obtaining a reverse mortgage.
It’s true a reverse mortgage loan may affect your eligibility for state and federal government assistance programs such as Medicaid but it also gives you an important financial cushion and does not (as mentioned above) affect your regular Social Security payments or Medicare benefits.
You also have no monthly payments to make. Granted, the amount you owe continues to grow larger over time but you also have more cash on hand to enhance the quality of your current lifestyle. Look at it this way, you will now have all the money you need (and want). After all, it’s your money. True, you won’t have the full selling price of your home to leave your loved ones but if they’re financially sound in their own right, do they really need a substantial inheritance?
It all comes down to what’s important to you, what your current financial needs are and if leaving money to heirs is something you feel you need or want to do.
Now let’s take a look at the basics of a reverse mortgage tips and info from here.
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