You may qualify for a
Reverse Mortgage.

Improve your

retirement

With a

reverse mortgage

Reverse Mortgage Disadvantages

Their is no such thing as free money. Businesses are in business to make money banks and lenders are no different. Almost all loans are secured by collateral and a reverse mortgage uses your home as collateral. At some point the banks and lenders of a reverse mortgage are entitled to be repaid what they lend you with interest. The major difference is with a reverse mortgage the lender waits for repayment. The repayment is not due until you refinance, sell or the last remaining owner passes on.

Essentially you are living off the equity in your property. With a reverse mortgage you are taping into your home equity. Equity is the difference between any liens or mortgages and the value. Just like a savings account when you take out money it wont be there later. The money you take out of your house will have interest charges as you now have taken it from your mortgage balance. While this is standard practice it is not a disadvantage but an option on your use of funds "equity". Always get a amortization table from your lender so you can see how much equity you will have as a result of what you withdrawal.

Traditional home loans are less expensive than a Reverse mortgage. Primarily because with a reverse mortgage the lender is taking the risk, not you. That is a big risk for the lender. I am sure you have heard of risk reward relationship, so it goes the greater the risk the greater the potential reward. While in a traditional "forward" mortgage the lender starts being repaid the first month after the loan is obtained. While a Reverse mortgage has the lender waiting an unknown length of time to receive repayment of any kind. They must charge a higher interest rate or a higher closing costs.

Educate yourself. Most people often don't understand the balance of finance. The may say "Its a bad idea... that: You'll lose your home! You are giving your home to the bank. Reverse mortgages are for poor people who have no heirs." As many vague and unfounded misconceptions about reverse mortgages even sensible people voice objections without inquiry. No one program program is right for everyone as circumstances range widely between individuals. Make a list of questions to make sure all your concerns are answered before proceeding. Truth is simple and can be show by fundamental mathematics. Have the "know-it-all" who fills their time with gossip bring forth the questions and see if they have merit or hold water. Uninformed opinions are often broadcast the loudest, so see for yourself if the program shows a valuable income, cash reserves or debt relief that truly helps you.

Reverse mortgage and sales. Circumstances range wide, so many Reverse mortgage professionals will often say "I will have to look into that before I give you an accurate answer." The simple truth is reverse mortgages are heavily regulated by the US government and the programs change with the market conditions. No free lunch here either, reverse mortgage professionals shop for the best rates and fees for you. Just like fixing a car it is sometimes unhealthy to take on the task for yourself... Just in the off chance you may save yourself a few bucks. Have you ever heard "The longest way is a short cut."? Use a reverse mortgage lender who gives you straight solid answers. One who promises the lowest price is misleading you as to their obligation to federal regulations.

Equity is key to a reverse mortgage. A reverse mortgage lender is not buying your home, so they will not not offer you the full amount that your house is worth. They can not give you the full amount as they need to leave room for and interest that needs to be added to the principle balance of the loan. A reverse mortgage loan will often be between 30 to 80 percent of the value of the home. The exact amount is calculated with your age and the program you choose. Reverse mortgages must assume all loans by pay off any existing mortgages. If you qualify for less than the allowable amount, it may still be worth it for you to pay the difference. As such you may not get a standard home equity line or any second encumbrances behind a reverse mortgage.

Is a reverse mortgage right for your financial goals... A reverse mortgage is a means of utilizing your home equity. Although you will not owe any monthly payments even after you use up all your available equity. If you have financial concerns of being without money, then the tenure income option will alleviate this stress. As it guarantees you a monthly amount for the rest of your life. Also keep in mind, should your home appreciate quickly, you can always refinance your reverse mortgage to get more money in the future. Not only to you alleviate your monthly mortgage but if you qualify you can also get a monthly income for the rest of your life.

TO MAKE IT SIMPLE THE BEST WAY TO IMPROVE YOUR RETIREMENT IS TO
UTILIZE A REVERSE MORTGAGE. THE REASONS ARE SIMPLE AND ARE AS FOLLOWS.

  • Stop Paying Your Monthly Mortgage Payment
  • No Medical Requirements
  • No Income Requirements
  • No Credit Requirements to Qualify
  • Stop Worrying About Mortgage Payment and Increase your Cash Flow
  • Title Remains in Your Name as Long as You Live in the Home
  • The Lender Pays the Homeowner TAX Free Payments "REVERSE MORTGAGE"
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