What are the advantages and disadvantages of a reverse mortgage?

The advantages are that you will increase your monthly net disposable income and will never have to make another mortgage payment. Disadvantages include the closing costs and your heirs will get less inheritance...





Rick Lanicek


www.primelendingonline.comWhat are the advantages and disadvantages of a reverse mortgage?
Advantage-Spend the cash now


Disadvantage-Lose the house when dead.What are the advantages and disadvantages of a reverse mortgage?
reverse mortage is fine if you live a really long time if not the bank wins, if you leave a spouse and pass away they might end up with no home
Advantages are if you stay in the property you never have to pay back the mortgage. No payments to make. If you sell the home for less than what the mortgage was you would not owe the difference.





Disadvantage is high closing cost. Your kids will hate you because they want your money.





You have to be a senior citizen to get a reverse mortgage and are required to go through HUD counseling to make sure you know what is involved. it can be a great tool for someone with cash flow problems that has considerable equity in thier home.
The advantage is that you get to pay less now. The disadvantage is that after a certain period of time, the bank will start to own more of your house than you do, until your equity just dwindles away. My advice is to stay away from this unless you are: 1) in absolute dire straits; or, 2) if you plan to sell your house within the next five years.