General Disclaimer: All the articles here are presented with no warranty. The information displayed on investingbytes.com may be different from what you see when you visit a financial institution, service provider, or a specific product’s site. We are not responsible for any errors or other inaccuracies in the content on our website. The information provided on our website is solely for informational and educational purposes, We recommend that you obtain considered and independent advice from a financial professional before you make any financial decisions or implement any financial strategy.
Advertiser Disclosure: Card Listings and other financial products that appear on this site are from financial companies for which investingbytes.com may receive compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. Investingbytes.com does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.
Pros and cons of reverse mortgages for seniors
A reverse mortgage is a type of financial agreement between two people wherein one of them is a homeowner who gives up a certain mutually agreed percentage of an amount of equity on the house in exchange for regular payments from the other person. This allows the homeowner to earn some cash against their home’s equity, while still maintaining a fair amount of ownership of their home. This article intends to give you an insight into reverse mortgages along with the pros and cons of the same for seniors.
The benefit of having a reverse mortgage is that in a conventional mortgage agreement, the borrower pays and the lender accepts payments. In reverse mortgages, as the name suggests, the lender pays the borrower in a variety of ways which may be a lump sum, or regular monthly payments, or even a line of credit. The reverse mortgage is usually repaid in either of the cases where the borrower dies, permanently moves, or the property is sold. Having said that, it is important to know that you must be over the age of 60 in order to qualify for a reverse mortgage. Hence, you can see that the reverse mortgage is for seniors exclusively.
It is important to note that these plans are reverse mortgages for retirement since the qualification age mandates that the borrower is over the age of 60. Here is a list of the pros and cons of reverse mortgages.
Make sure to read from a lot of sources and make an informed decision while taking up a reverse mortgage.
A home loan is a sum of money borrowed from any financial institution or a bank to purchase a house....Read more
GEICO is one of the leading vehicle insurance providers in the market and has been providing valuabl...Read more
Top rated RV Insurance Companies An RV is a motorhome that comes with living quarters and this ve...Read more
Medicare Advantage plans, also known as “Medicare Part C” or “MA Plans” are a channel for in...Read more
Subscribe to our newsletter to receive latest updates in the world of finance!