REVERSE MORTGAGE: IT SHOULD BE THE LAST RESORT NOT THE FIRST
If you are a senior citizen and you have an income which is not sufficient for the survival, you may opt for a Reverse Mortgage loan; let your house take care of you. How enthralling this sounds when someone tells you that the house that you have bestowed consideration since years will now care for you and pay you back. You can remain to stay in the house till you wish to, which could be effectively, the rest of your life. The choice of payment is free, you can get a monthly payment as long as you remain in your home or you may get a big lump sum amount upfront, and then you just live in the house, for as long as you wish. You can also the equity as a line of credit.
Following are certain pros and cons, which should be taken into consideration before you finalise your choice:
- There are a lot of additional fee that might not be unveiled while you close a deal to opt for a Reverse mortgage. This will include the appraisal fee, a hefty origination fee (though it is capped). Apart from this you have to pay your mortgage insurance and the homeowner has to pay the taxes and insurance as well.
- Make sure that both spouses own the house. Why? For say if the wife dies, the house was in her name, the husband, who isn’t listed as an owner of the home, will have to pay back the loan on the house, and on failure he may lose the house.
- A reverse mortgage should be a last resort, not a first resort. Following are some of the cases:
- Having a multitude of ways to fund your retirement, you shouldn’t be choosing for this.
- If you have had a loss of wealth and you foresee an unstable future after your retirement, this may be worth your time to look into.
- Again if you are cash deficit, but you a lot of equity in your house, this could sound lucrative.
- If your house is in the middle of bankruptcy, a reverse mortgage can help you pay off those debts and keep you in your home. But yet again you should compare the deal. You can also sell out the house, pay off all the debts and find a cheaper house. Think long and hard before closure.
- If you are offered a credit line option, please read through the terms and conditions thoroughly. You may be charged an interest rate on the loaned out money even though it’s your own money that you’re removing, also it was the financial institution’s idea to offer the line of credit.
Reverse Mortgages are not tricky; one needs to take a proper churning of all the aspects, a thoughtful plan and an awareness of all the hidden conditions. Talk to your consultant, broker or the loan financer and make your decision.
Reverse Mortgage Leads are not hard to get in today’s internet generation, you can find a lot of business’s selling those but Reverse Mortgage Leads that close are sold buy only a few of those Lead Selling Organizations which understand what an Actual Reverse Mortgage is, Inspirecs.com is one of those Lead Generation Companies which has been generating Reverse Mortgage Leads for quite a while now and is experienced enough to generate qualified and motivated Reverse Mortgage prospects.
If you wish to know more about our Reverse Mortgage Live Transfer Lead Products, please feel free to give us a call at 1-800-986-9315 Ext 1 to speak to one of our Sales Representatives and get answers to all the questions you may have.