Rilian Ball

First Capital Group

  • Home
  • About
  • Buying a Home
  • Main Website
  • Get a Quote
  • Apply
  • Contact

Considering A Reverse Mortgage? Understand These Important Points First

February 11, 2020 by Rilian Ball

Considering A Reverse Mortgage Understand These Important Points FirstThere are many individuals who end up on a fixed income once they reach a certain age; however, their expenses aren’t always fixed. Sometimes, there is a large medical expense. In other cases, someone might need money for a new car or a home repair. In the event that someone needs cash quickly, one option is called a reverse mortgage.

Those who have equity built up in their home can draw upon this to help with unexpected expenses. This is a quick source of cash that many people overlook. At the same time, it is important to think about the pros and cons of a reverse mortgage.

The Pros Of A Reverse Mortgage

Taking out a reverse mortgage does have several benefits that everyone should know. First, there are no required monthly payments for any reverse mortgage loan. In addition, the money that people get from a reverse mortgage is not taxable. For many, this acts as a tax shield against any income that results from a reverse mortgage.

Next, nobody can ever owe more money than the value of the home when the building is sold. This prevents people from getting buried by potential interest payments. Finally, nobody will ever have to leave their home with a reverse mortgage. The owners retain the rights to the property.

The Cons Of A Reverse Mortgage

On the other hand, there are a few cons that people need to keep in mind as well. First, reverse mortgages are regulated by the federal government, which means that everyone needs to read the rules and regulations carefully. In addition, not everyone who owns a home will qualify for a reverse mortgage. They need to have enough equity built up in the home before the lender will consider it.

In order for someone to take out a reverse mortgage, a lien is going to be placed against the property. In the eyes of some, a lien must be paid off in the event the property is to be sold. Finally, in order to prevent a reverse mortgage from resulting in foreclosure, the building needs to be both maintained and insured.

Thinking about the pros and cons carefully can help someone decide if a reverse mortgage is right for them.  Contact your local home finance professional to get the best advice for your personal situation.

Filed Under: Mortgage Tagged With: Financing Options, Mortgage, Reverse Mortgage

First Capital Logo

Rilian Ball


Branch Manager
First Capital Group
NMLS# 202687

Browse Articles by Category

Get in Touch!

  • This field is for validation purposes and should be left unchanged.

Recent Articles

  • 3 Things That Will Absolutely Kill Your Chances for a Mortgage Approval
  • Mortgage Interest Rate Versus APR: What To Know
  • Navigating A Market With Higher Interest Rate
  • Understanding Mortgage Pre-Approvals and How to Avoid Being Declined for One
Rilian Ball
NMLS # 202687

Company NMLS: 35960
www.nmlsconsumeraccess.org

Search this website

Loan Options

  • 15 Year Fixed Rate Mortgage
  • 30 Year Fixed Rate Mortgage
  • FHA Home Loan
  • VA Home Loan
  • Jumbo Home Loan

Copyright © 2023 · Powered by MySMARTblog