Is a Reverse Mortgage the right choice?
A reverse mortgage was originally intended to help retirees live comfortable during their retirement years. This type of mortgage was intended for individuals over the age of 60. Now these reverse mortgages are being used for another reason, to help stop the foreclosure process.
A reverse mortgage is exactly what it sounds like. The bank will make payments to you based on the fact that the homeowner has a legitimate amount of equity in the home.
Are you considering a reverse mortgage? A few things to consider and review have been listed below:
- Reverse Mortgages have super high fees that can range up to 7% of the loan amount. Fees can exceed $15,000!
- The fees are high enough for some lenders to talk you into the loan if it is not completely necessary. Beware!
- A reverse mortgage can make it very difficult to leave the property to your loved ones.
Choosing the right mortgage that meets your needs is not an easy process. Always seek the advice of a financial professional when determining what type of loan is right for your situation.