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Pros And Cons Of Reverse Mortgage Loan

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Nowadays, there are many people marketing reverse mortgage loans. These loans are a hot trend now, and they are getting cash coffers into many seniors. Although you may believe all the hype, you need to understand that any good thing has its pros and cons. This is the same case with reverse mortgage home loans. Therefore, before going for them, you should consider the benefits and pitfalls, advantages and disadvantages of them.

Pros and Cons

Pros

A reverse mortgage is another form of getting cash from your home. Previously, you had to sell the house or use it as collateralft36y37u8ai93i93 for loans, which you pay back in monthly instalments. On the other hand, reverse mortgages are the type of loans where the amount borrowed is not repaid back as long as the owner of the home is living in that home. The loan is only repaid when a borrower dies or moves out permanently out of the home or when the house is sold. Lenders pay the loan amount in three ways, monthly payouts, lump sum, or line of credit. In reality, this is a big advantage for the elderly.

Types of reverse mortgage loans

These types of loans include single purpose, private proprietary reverse, and home equity conversion. The latter is the most popular loan that is backed by mortgage insurance. Single purpose loans remain to be the cheapest. Unfortunately, you are required to use them for a single purpose. This can be paying property taxes or home repair. If you are looking for low-cost mortgages, which you can use for various purposes, HECMs are the recommended ones. One of the reasons to support them is because the government insures them.

Reverse mortgage home loans can be considered like wine: as it becomes older, it better it gets. In this type of loan, you will get more money if you are older. To qualify, you need to be over 62 years and fr35t36ya7u83j93you must be the owner of the home. You should note that not all homes are eligible. For instance, trailer homes are not eligible. Homes that qualify include detached homes, dwellings, and approved condominiums

Cons

Before getting this type of loan, you need to consult a designated counselor. In fact, if you are not careful, you can find that these types of loans can cause a negative impact on your finances. The credit consultant needs to point out all pitfalls, cons, and disadvantages.…

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Weather Forecast

Areal Flood Watch

Issued:
10:05 PM EST on December 13, 2018
Expires:
6:00 PM EST on December 15, 2018
Chance of Rain
Friday 12/14 70%
Chance of Rain
Cloudy with occasional showers for the afternoon. High 47F. Winds light and variable. Chance of rain 70%.
Rain
Saturday 12/15 80%
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Cloudy with periods of rain. High 53F. Winds NE at 10 to 15 mph. Chance of rain 80%. Rainfall around a quarter of an inch.
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Sunday 12/16 90%
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Rain early...then remaining cloudy with showers in the afternoon. High 47F. Winds NNE at 10 to 15 mph. Chance of rain 90%. Rainfall near a half an inch.
Clear
Monday 12/17 10%
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Sunny, along with a few afternoon clouds. High around 50F. Winds WNW at 10 to 20 mph.
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Tuesday 12/18 0%
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Mainly sunny. High 42F. Winds NW at 10 to 20 mph.
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