What are the disadvantages of a reveerse mortgage?
A few things to think about--1. You might outlive your assets.2. A collapse of real estate values could leave you with a mortgage with more borrowed on the property than it is worth. What happens then? Can the lender foreclose? Who takes the loss?
What are the disadvantages of a reveerse mortgage? Up front fees are high.I am suspicious about any gov't program with restrictions mostly designed to protect the lender.
If you die quickly -- car accident or heart attack, my concerns are not important. However if you die of "old age", heart failure or any number of other debilitating causes you will have to settle up on the mortage when you move out of the house. Unless you have significant other assets, you may find it very difficult to find housing (or pay for assisted living).If your are considering this because you feel you need more money, it's kind of like gambling -- if you win great. If you loose not.GordonAtlanta
Try this calculator from AARP.http://www.rmaarp.com/The disadvantage I see is that the amounts available are much less than most people imagine. And, the payoff on moveout provisions make keeping the home in the family nearly impossible.
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