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Reverse mortgage drawbacks include:
- Closing costs are generally a bit higher than convention forward mortgages.
- you get reduced equity in the home due to the loan taken out.
- The interest is added to the loan balance each month, so you have an increasing mortgage payoff, however HECM loans guarantee you will never owe more on the property than its current home value.
- While they do not impact Social Security or Medicare benefits, Medicaid recipients could have a detrimental reduction in benefits from a reverse mortgage.
Many misunderstand these loans and believe the following drawbacks exists- however these drawbacks are myths and are not true:
- You lose home ownership- that is false
- You cannot leave your equity to your kids- again false
- You cannot move, refinance or pay the mortgage off early- false
- You cannot purchase with a reverse mortgage- false
- The lender can pursue you or your kids for any shortfall on the payoff if you move or when you pass away- false
- There are no fixed rate reverse mortgages- false
- Closing costs are extremely high- false
Hope that helps
What else can I help you with?
Do you still have to pay monthly mortgage if you have a reverse mortgage?
No, the purpose of a reverse mortgage mortgage is to eliminate mortgage payments permanently.
What is a reverse mortgage lead?
A reverse mortgage lead is where you can get names of people that are interested in getting a reverse mortgage. These leads should already have been screened to meet the criteria for a reverse mortgage.
What are the reverse mortgage scams taking place today?
Yes, there are reverse mortgage scams, as well as regular mortgage scams. You need to be careful who does your reverse mortgage, so you do not get scammed
Reverse Mortgage Calculator?
Reverse Mortgage Calculator Use this calculator to help determine the balance of a reverse mortgage. This calculator is specifically designed to show you how the outstanding balance of a reverse mortgage can rapidly grow over a period of time.
Where can you find a reverse mortgage calculator?
Reverse mortgage calculators can be found on line on most mortgage websites.There are hundreds of mortgage loan sites.& This calculator makes it easier to understand the reverse mortgage math and to let you see if this type of mortgage is best for you.
What is American reverse mortgage?
American reverse mortgage is when you borrow money based on the value of your house. A reverse mortgage has the option of being a lump sum or installments.
Where can I learn about liberty reverse mortgage?
You can learn about liberty reverse mortgage from any local tax consultant or by finding it on a website which deals specifically with liberty reverse mortgage.
Can you re-finance your reverse mortgage?
yes, you can refinance it to a regular mortgage, or if interest rates are lower you can streamline it to a new reverse mortgage.
Can you get a reverse mortgage if you file bankruptcy?
Yes, a reverse mortgage does not have any credit requirements, however if you are in bankruptcy or filing one you may need court approval to do the reverse mortgage.
What do you do with marketing and reverse mortgage?
There isn't any marketing that you need to do for an reverse mortgage. All you have to do is visit a local realator and you can also go online and search under reverse mortgage.
Where can one get reverse mortgage quotes?
There are many places where one can get reverse mortgage quotes. One can get reverse mortgage quotes at popular on the web sources such as ARRP and Bank Rate.
Where can I find a reverse mortgage guide?
If you want a reverse mortgage guide, your most reliable guide is a trained reverse mortgage professional. Try contacting an established local firm for guidance.
