| With any situation in life it's important to weigh the pros | | | | out a payment plan consisting of a One Lump Sum, |
| and cons, especially in financial situation. If a person | | | | monthly payment, periodic line of credit, or a |
| does not weigh the pros and cons of a financial | | | | combination thereof. The pros of a Reverse Mortgage |
| situation, then that person may find themselves in debt, | | | | Pros and Cons debate become more evident when |
| or without sufficient funds to live on. So, when | | | | the applicant understands that his or her house will |
| understanding this, it is perfectly reasonable to | | | | never be in danger of being taken away, which is |
| understand why so many qualifying senior citizens are | | | | completely contrary to the fear of foreclosure with a |
| apprehensive about what are called Reverse | | | | regular mortgage loan. Unless the homeowner willingly |
| Mortgages. Reverse mortgages are mortgage loans | | | | decides to sell his or her home, then the only way the |
| only available for senior citizens who are 62 years of | | | | home can be sold is either upon death, or upon |
| age or older. Reverse mortgage loans require the | | | | incapacity to live in the home for more than 12 months. |
| lender to pay the borrower (homeowner) instead of | | | | Yet, there must be some kind of disadvantage, right? |
| the other way around (which is common in regular | | | | After all, the reverse mortgage loan is still a loan, and |
| mortgages). | | | | loans need to be paid back somehow. This is true, |
| For senior citizens 62 years or older that qualify for | | | | reverse mortgage loans do need to be paid back, but |
| reverse mortgages, it's easy to immediately notice the | | | | they are paid back through the proceeds generated |
| pros of the loan. However, since senior citizens have | | | | by the sale of the house. If the house sells for less |
| so much more experience under their belts than other | | | | money than the loan amount due, then the mortgage |
| younger Americans, it is common that they would | | | | insurance will pay it off. If the house sells for more |
| want to know more information in order to further | | | | money than the loan amount due, then the existing |
| weigh the Reverse Mortgage Pros and Cons. | | | | homeowner or heir(s) will pocket the difference. It's |
| However, the more a senior citizen weighs the | | | | clear that the debate of Reverse Mortgage Pros and |
| Reverse Mortgage Pros and Cons, the more that | | | | Cons is clearly won by the overwhelming amount of |
| same citizen will realize there are no cons, and only | | | | pros, and the forfeit of the cons. Also, with un-taxed |
| pros. How is that possible? Well, read more to find out. | | | | revenue being receive without having to work, the |
| First of all, the money that is paid to the homeowner | | | | senior citizen will be able to enjoy life a lot more, and |
| by the lender is un-taxed, and does not need to be | | | | spend time with people he or she loves, as well as be |
| paid back. Also, the homeowner can do whatever he | | | | able to spend time doing things he or she was not able |
| or she wants with the money received, and can figure | | | | to do before when bills were a problem. |