There are many retirees out there who are in a world of hurt. The economy has all but killed the American dream of retirement. Trying to work until they are forced out, many seniors find that they just cannot survive on the pittance of a pension that they receive and social security is little more than a stipend. For this reason, many of them are telling their heirs that there is no such thing as Santa Clause. It is starve or sell the home. There is another option, however, that many are considering, the reverse mortgage.
Standing Toe To Toe
The reverse mortgages pros and cons, when stood toe to toe, look at first to be quite lopsided. It really appears that the pros far outweigh the reverse mortgage disadvantages… at first glance, that is. When you really get a good look at the reverse mortgage disadvantages, however, you begin to realize that the pros are fluffed up to look bigger by agents and companies that want the business.
A Bunch of Whoppers
The reverse mortgages disadvantages are whoppers, even if there are only a few of them. You have to have reached the age of 62 to receive the loan. The interest is really big and there are huge up front fees involved. The reverse mortgages pros and cons have to be scrutinized with a magnifying glass to see the details, but they are right there in black and white. On the pros side of the coin, however, you do no have to repay the loan as long as you live in the house that you cherish so much.
Better Than the Alternative
The worst of the reverse mortgage disadvantages is that your children will never get to live in the home or benefit from its equity. This is really sad if any of the children wanted to move into the place once you were gone. The reverse mortgages pros and cons are hard to digest, but it is better than the hardships that are its alternative.
- Pros And Cons Related To How Does A Reverse Mortgage Work (debt-consolidation-2u.com)
- How a Good Reverse Mortgage Splash Page Works (2010tax.org)