Many seniors have many questions about reverse mortgages. Is this a good idea or not? Will my home be destroyed? "Now, the bank will not be my property, but on my title. These are legitimate questions. There are many things in life that have both benefits and disadvantages. Reverse mortgages are not an exception. These are some helpful tips for finding information on reverse mortgages.

The PROS and CONS of Reverse Mortgages

As long as your primary residence remains your residence, the Federal Government will guarantee tax-free income.

You can change your plan at any time by using line credit, cashout, or monthly checks.

Each month, the remaining credit line is increased at half of the current interest rates.

An equity loan is available to anyone who meets the income, credit, and health requirements.

This is an excellent option for seniors who wish to remain in the same place they've lived for many years.

Many seniors experience emotional turmoil, according to reverse mortgage lenders in Glen Allen. It is possible to have many fond memories in the "home sweetheart" you love, so it might be better to stay close to your loved ones and remain in your local community.

Reverse mortgages are available to help pay off mortgages and debts. Your debts will be transferred onto your Reverse Loan balance. To qualify, you don't need to have a home.

There are no additional fees, other than the appraisal fee. HUD counseling agencies may waive the fee.

You can still live in your home, regardless of how much reverse mortgage debt you have. You can't be forced out of your home as long as you pay your homeowner's taxes and your real estate taxes.

Reverse mortgages may be refinanced as often as you have equity.

After the sale of your home, you will no longer owe any additional mortgage. You can choose to pay off your mortgage, continue living in your home, and your heirs decide to pay the mortgage debt after your death.

Mortgage debt can't be attached to assets and doesn't pass to your heirs. The house (non-recourse) loan is the debt.

Reverse mortgages in Glen Allen provide many protections. They include capped interest rates, a limit on fees and HUD counseling. Asset protection (nonrecourse loan) and no maturity (cannot become due during borrowers' lives).

This can be used by heirs to avoid some of the real estate tax.

Your heirs may be eligible to receive interest from your mortgage after your death. Consult your tax advisor for more information.

These are the pros. It's not hard, is it? Reverse mortgages have their drawbacks. These are the cons.

The CONS for Reverse Mortgages

Reverse mortgages have all the same closing costs as traditional mortgages. These can be even more costly. FHA mortgage insurance may be added to closing costs. These costs are standard for all FHA loans.

Reverse mortgages may help to reduce your children's inheritance. A reverse mortgage is not a mortgage payment. It's a rising debt loan. The reverse mortgage is different from a traditional mortgage. Equity grows with mortgage payments.

A reverse mortgage may offer a greater return than selling your house.

A reverse mortgage is not advised for anyone who plans to move within the next five year. A reverse mortgage is not recommended for the short-term.

Lenders might demand repayment if your homeowner's taxes or real estate taxes are not paid or your home is neglected. Lenders will work closely with you to rectify the default.

If you are not a resident of your primary residence for 12 consecutive months, the Reverse Mortgage will be due. (Nursing homes, assisted living, moving, etc.

If you are not able to sell the property, your heirs have the option of keeping the equity or selling it. They might also be eligible to get their own mortgage. If you wish to keep the house, your heirs will need to pay the full amount.

Medicaid may be affected. If you don't use your Reverse Mortgage proceeds each monthly, you may not be eligible to receive benefits. Consult your attorney or Medicaid for more information.

What to NOT do with a reverse loan

A equity loan may be a better option to get cash from your home.

If your primary goal is to fix your house, a community loan may be more suitable.

If you are very ill or require assisted living, do not choose a reverse mortgage.

If your family suggests that a senior mortgage should not be considered, take their advice into consideration and keep your mind open to the possibility. They will always be there for your best interests.

Your children may invite you to live with them. This could be an alternative to living in your own home.

FHA Reverse Mortgages are not available for homeowners who use more than 25% of their living space for business purposes.

Senior mortgages are a subject that should be approached with open minds. There have been some false reports in the media that have scare seniors who could have greatly benefited by this program. For more information, contact your local Office For the Aging. A Reverse mortgage specialist can be contacted as well.