Biggest Advantage of a Reverse Mortgage

Posted by Charles D

December 31, 2008

reverse mortgage advantages

As I shift through the internet to find solid information related to reverse mortgages to present on this site, I often find a lot of noise. Noise meaning meaning many people make claims regarding advantages and disadvantages but there is very little information that is universally standard. As I usually advice on this blog, before you take the reverse mortgage plunge, do your homework to find the situation that works best for you.

When I find good information I like to highlight it.

Sue Hunt, a housing counseling programs manager for Consumer Credit Counseling Service of Greater Atlanta, says reverse mortgages tend to make the most sense for people who want to spend the rest of their lives in their homes and whose total income, including the loan, will be sufficient to cover all their future expenses, she says.

With any type of loan, it’s important to understand the fees, interest rates and repayment terms.

For instance, an important safety feature of an HECM is that your payments from the lender are guaranteed by the federal government. Plus, if your home is sold for less than the loan’s value, neither you nor your heirs will be liable for the balance, which isn’t always the case with proprietary products.

For more information regarding Consumer Credit Counseling Service of Greater Atlanta visit them online.