2006-09-12 05:59:47 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Pros - you can live in the house until you die with a steady income from the reverse mortgage.
Cons - The bank owns the property when you die.
2006-09-12 06:30:43 · answer #1 · answered by Steve R 6 · 0⤊ 0⤋
It particularly relies upon on the elect for the money. the undertaking is that the each and each month the assets proprietor loses fairness by no longer paying the non-public loan (extra if in addition they get money too). however the shortcoming of fairness is plenty quicker than the income of fairness in a universal own loan with the aid of each and all the unpaid interest and paying the interest on the unpaid interest. the only way you will comprehend the cost of fairness loss is thru crunching some numbers with your community own loan officer. do no longer forget approximately the assets proprietor would desire to be a minimum of 62 to even get one. Then there are subject concerns with Medicaid and retaining components for heirs, making possessing a house in any respect a foul thought (without or with opposite own loan).
2016-12-12 07:10:03 · answer #2 · answered by ? 4 · 0⤊ 0⤋
The pros : it helps the person who owns the house live alittle more comfortable in their last years of life.
Cons : it leaves the family with no property to inherit, though for some families that would be a blessing due to morons fighting within the family.
I personally think its a bad idea but then it is merely MY opinion! : )
2006-09-12 06:07:53 · answer #3 · answered by Kitty 6 · 0⤊ 0⤋
if your retired its great,if not just sell your house.at least if u remortgage its got some taxwriteoff value.
2006-09-12 06:08:55 · answer #4 · answered by swashbuckler82 4 · 0⤊ 0⤋