Are Reverse Mortgages All Good?

Posted by charles dennis

July 24, 2007

It is not often that web readers are afforded a chance to learn about a contrarian point of view in regards to reverse mortgage benefits. I found this article to be interesting.

Reverse Mortgages are gaining more and more steam due to the vast amount of benefits and heavy regulation in the industry.Despite the various benefits of a reverse mortgage, it is crucial to consider its drawbacks prior to securing one.

When the homeowner dies or permanently moves out of his home, the home will need to be sold in order to pay off the mortgage. The mortgage will be due at this time, in a lump sum. If the homeowner or his inheritors want to keep the home, they would have to make payment on the home within a year of the mortgage becoming due. However, the heir can refinance the home to a loan that better fits their needs and budgets. There are quite substantial fees involved in a reverse mortgage. Full Post.