2006-08-22 09:30:31 · 5 answers · asked by nils_mck 1 in Business & Finance ➔ Renting & Real Estate
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.com
2006-08-22 10:03:07 · answer #1 · answered by Anonymous · 0⤊ 0⤋
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.
2006-08-22 09:42:23 · answer #2 · answered by Bucky 2 · 0⤊ 0⤋
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.
2006-08-22 09:42:55 · answer #3 · answered by Faith C 3 · 0⤊ 0⤋
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
2006-08-22 14:26:40 · answer #4 · answered by worm 3 · 0⤊ 0⤋
Advantage-Spend the cash now
Disadvantage-Lose the house when dead.
2006-08-22 09:38:28 · answer #5 · answered by Joe P 4 · 0⤊ 0⤋