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What is the Catch with a Reverse Mortgage?

There really is no catch with a reverse mortgage. You continue to live in your home but you also receive a monthly check to be used however you wish.

While some people are afraid they could lose their home if they get a reverse mortgage, it is important to get the facts so you will feel good about what you are doing. The truth is, you will be able to remain in your home for the rest of your life, if you choose. Rest assured, reverse mortgages are safe and can enable you to enjoy greater financial security during your golden years.

Your Income is not a Factor with the Reverse Mortgage

If you were to take out a home equity loan or a personal loan, your income and debt to credit ratio would be instrumental in the decision making process as to whether or not you would qualify. However, with a reverse mortgage, your income is not a factor. Rather, your age and the value of your home are principal deciding factors with the reverse mortgage.

You Cannot Lose Your Home Due to Foreclosure

When you take out a reverse mortgage, you cannot lose your home due to foreclosure. This is an important consideration because when you take out a second mortgage or put your home up for collateral on another type of loan, you could potentially lose your home if you were not able to make the payments. However, as long as you live in your home you do not have to make payments on a reverse mortgage so it is a far safer way for the elderly to borrow money.

You Can Still Leave Your Home to Your Loved Ones

Even though you take out a reverse mortgage, you can still leave your home to loved ones if you wish. By repaying the amount you received, along with interest and any fees associated with the loan, your heirs can still inherit your home.

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What is the Catch with a Reverse Mortgage?

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