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Reverse Mortgage Cons

 

reverse mortgage consThere are several reasons why any senior should think deeply before obtaining a reverse mortgage. Before considering a reverse mortgage as the last tool to guarantee financial security, it is essential to consider several factors.

 

Reverse Mortgage Cons

  1. The applicant must not be less than 62 years old to qualify.
  2. The applicant must pay for and attend a mandatory mortgage counseling.
  3. The applicant may be required to pay monthly servicing fees during the term of the reverse mortgage.
  4. The associated fees- origination fees and closing cost are expensive.
  5. The interest rate on most reverse mortgages are variable and are dependent on the current market dictates.

   qualify for a HECM

  • The total debt rises and the interest is added to the loan balance.
  • The interest cannot be deducted until the loan is paid off.
  • The borrower can be asked for loan repayment as a result of failure to pay property taxes and insurance, stay in the home for 12 consecutive months, or maintain the home.
  • The equity in the home gets used up leaving the borrower and the heirs HECM Reverse Mortgage Conswith fewer or no assets.
  • The size of mortgage an applicant can get is limited as well as how much can be borrowed in the first year.
  • The borrower must pay property taxes and insurance.
  • Reverse mortgages affect Supplemental Security Income (SSI) because a person that will qualify for SSI cannot receive more than $600 monthly income.

Find out more about Reverse Mortgage Cons.

REVIEWS
5(based on 1 reviews)
  • Looks like you put a lot of work in here. Great information and very helpfull Brandon 07/26/2016
Call us today at 424 225 2167 for help. One of our mortgage professionals will help you get the best possible  Reverse Mortgage loan solution for your situation. We’ll be with you every step of the and not hand you off to someone else. AZ, CA, CO, HI, FL, NV, OR, TX, and WA.
*Borrower is responsible for property taxes, homeowners insurance, and property maintenance. A HECM is a home-secured debt payable upon default or a maturity event. **Some restrictions apply. This material has not been reviewed, approved, or issued by HUD, FHA, or any government agency.

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 Call us today at 424 225 2167 or Chat or Email to explore your options. One of our mortgage professionals will help you get the best possible Reverse Mortgage loan solution for your situation. We’ll be with you every step of the process and not hand you off to someone else.
The services referred to herein are not available to persons located outside the state of California.
Borrower is responsible for property taxes, homeowners insurance, and property maintenance. A HECM is a home-secured debt payable upon default or a maturity event. Some restrictions apply. This material has not been reviewed, approved, or issued by HUD, FHA, or any government agency.