Disadvantages of Reverse Mortgages
July 2nd, 2008 by fhop29
Reverse mortgages are becoming more popular as more seniors are discovering their benefits and as companies like Senior Lending Network are out there spreading the word. There are a few cons that you need to take into consideration before getting this type of loan:
- Reverse mortgages cost more than regular loan especially when you consider that the loan balance increases over time. The unpaid interest is tacked on to the original loan amount each month each month so the end amount owed increases dramatically over time as the interest compounds.
- Because the loan amount increases over time, it will decrease the equity that would otherwise pass to the homeowner or their heirs.
- Interest on reverse mortgages isn’t deductible on your tax returns until the loan is paid off.
There are many other things to consider with reverse mortgages so feel free to get a free DVD from Senior Lending Network.
Also, check out these videos on reverse mortgage.
Lou on Suze Orman Show 11-17-07
Fox News - Reverse Mortgages - Interview with RMS, Inc
PBS 39 Tempo - Show 452 - Seg 1 - Reverse Mortgage
Tags: reverse mortgages, cons of reverse mortgages, disadvantages of reverse mortgages, mortgage, loan
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This entry was posted on Wednesday, July 2nd, 2008 at 8:49 pm and is filed under Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
