Advertisements Do Not Do Justice To Reverse Mortgage
If you are one of those considering converting home equity to cash, the best way to reach an informed decision is through reverse mortgage information that can be easily accessed from online websites and blog posts. Do not be swayed by advertisements but base your decision on expert advice.
The idea of reverse mortgage sounds good because seniors who are 62 years old and above can borrow against the home equity so that they can enjoy a retirement life without selling their homes. On the other hand, debt.org cautions the retirees that if they do not use the proceeds from reverse mortgage loan wisely, they can jeopardize their retirement.
Over the past years, the popularity of reverse mortgage has soared; however, it only accounts for 1% of the $11.5 trillion of US mortgages. After the recession in 2008, the popularity of reverse mortgages plummeted. Meanwhile the growing number of eligible applicants has caused a turnaround. The number of people who are 62 years old and above is expected to increase to98 million in 2060 from the present 46 million.
The booming senior populations are old enough to qualify for reverse mortgage but they should not base their decision on Tom Selleck and his assurances that reverse mortgage will not take away the home. It is just a promise made by Tom Selleck on behalf of the industry. Your home can be taken away by the lender of reverse mortgage if you do not pay your property taxes, insurance, maintenance and repairs and association dues.
The reverse mortgage becomes due when you die but the heirs can pay off the loan if they want to keep the home. The heirs can also allow the lender to keep the property so that the debt can be settled. If you move out of the home and live elsewhere, you also have to repay the loan.
There are lots of misconceptions regarding a reverse mortgage loan that is why it is important to access reverse mortgage information to know the facts as well as the benefits and downsides. Reverse mortgage is not for everybody that is why you must choose wisely for the best options in your retirement planning.