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