What Is a Reverse Mortgage?

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What Is a Reverse Mortgage?

Reverse mortgages are a type of loan that are available to persons over the age 62 and residing in the U.S. They basically allow the person to take out a loan based on the equity that has accrued on their home. This is often considered a secure and favorable way to take out a loan, mostly because the borrower doesn’t have to make monthly payments. Instead, the loan amount will be due (along with interest) when the person moves out of their home, or upon their death. 

What Are Some Reverse Mortgage Pros and Cons?

When considering whether to apply for a reverse mortgage for senior citizens, it helps to considers some of the pros and cons associated with such loans. 

Some advantages of reverse mortgages are:

Some disadvantages of reverse mortgages may include:

Thus, weighing these factors can help when making such an important decision. State laws may be different regarding the small details and ins/outs of reverse mortgage loans. Understanding your rights can help you avoid disputes with a lender in the future.

Do I Need a Lawyer for Help with a Reverse Mortgage?

Applying for a reverse mortgage can be very helpful, but it’s important to understand how they work and how they can affect your financial status. It’s in your best interests to hire a lawyer and work closely with them when applying for a reverse mortgage. Your attorney can provide you with legal guidance the matters, to ensure that your rights are being fully protected. Also, if you do need to file a lawsuit regarding a reverse mortgage, your lawyer can represent you during the process. 

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Last Modified: 07-22-2015 11:10 AM PDT

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