Learn about the different reasons some people choose to get a reverse mortgage.
You have probably seen commercials on TV or in magazines talking about reverse mortgages. These are also called home equity conversion mortgages or HECM (pronounced ‘heckum’) for short.
So what’s the big deal and why do people who are buying a house choose this option over conventional loans or even paying cash?
NO MORTGAGE PAYMENT
Well, the biggest advantage to the reverse mortgage is that there are no mortgage payments required. This option frees up your income to be used in other ways and for those on a fixed income, this can be very appealing.
Sometimes people use reverse mortgage loans to access the equity in their current home. They may have
1) An immediate financial need.
2) Choose to use their equity for enjoyment.
3) Re-invest their equity in a business, other real estate, or various other ways.
BE AWARE OF MISINFORMATION
If you have done much research into reverse mortgages, you may have come across some cautionary articles. There are even people who say they have lost their homes because of a reverse mortgage. Most of the time these stories lack relevant facts like the person not paying their property taxes or keeping the home insured properly. The articles may reference reverse mortgages from several years back as well, before the loans were FHA guaranteed and current protections were in place.
Just like anything, especially financial products,
it’s important to do your due diligence.
Get the facts yourself.
Do your homework.
Talk to reputable qualified people you can trust before making a decision.
Are you questioning if now is a good time to buy? Click HERE to watch the video that will help decide whether it makes sense to buy or not.
