Q: What Is The Advantage Of A Reverse Mortgage?
A: The primary advantage of a Reverse Mortgage is that a senior can borrow against the equity in their home for any purpose without having to repay any principal or interest as long as they reside in their home. The senior retains title and is responsible for taxes, insurance, and maintenance as they would be with any conventional mortgage. The monthly interest that would otherwise be payable is added to the amount borrowed (principal amount). In effect the loan continues to grow in size. At the same time the value of the home will probably grow if past appreciation is any guide – at least over the long term. In many cases, this results in the borrower’s equity growing faster than the loan balance. Reverse Mortgages don’t work for everyone, but it is a financial option that is worthwhile considering. . Please call if you would like to learn how one could benefit you.