Posted on: 30th Sep, 2013 11:25 pm
I plan to take out a reverse mortgage. I need to know if there are any disadvantages of reverse mortgage which I should know about before taking out the loan?
Hi Peppy!
Welcome to the forums!
There are disadvantage of a reverse mortgage. And you should be well aware of it when you take out such a loan. A reverse mortgage will actually increase your debt and falling equity. As you do not pay the monthly mortgage payments, you will not be able to build up equity in your property. Moreover, the rate of interest can be higher and you have to pay high closing costs.
Feel free to ask if you have further queries.
Sussane
Welcome to the forums!
There are disadvantage of a reverse mortgage. And you should be well aware of it when you take out such a loan. A reverse mortgage will actually increase your debt and falling equity. As you do not pay the monthly mortgage payments, you will not be able to build up equity in your property. Moreover, the rate of interest can be higher and you have to pay high closing costs.
Feel free to ask if you have further queries.
Sussane
Welcome Peppy,
There are chances that reverse mortgage proceeds may affect your chances of qualifying for Medicaid benefits.
There are chances that reverse mortgage proceeds may affect your chances of qualifying for Medicaid benefits.