areversemortgage

The main reason people use a reverse mortgage is that they get to stay in their home for as long as they wish. If home prices rise at a significantly higher rate than interest on the loan, then reverse mortgages can be affordable, but prices don’t always rise. Another reason people use reverse mortgages is that you can usually get one if you have equity in your home, regardless of your credit. This may be a reason for people with poor credit to use them, but it doesn’t mean they are the best option for everyone. Interest rates tend to be adjustable, as the duration of the loan is unknown. Rates are reset on a regular basis, as often as every month. Discuss of 5 questions to ask before considering a reverse mortgage, listed below. Do you really need a reverse mortgage? Can you afford a reverse mortgage? Can you afford to start using up your home equity now? Do you have less costly options? Do you fully understand how these loans work? Reverse mortgages are one option, but for many people there may be more affordable alternatives. Many homeowners, particularly those with good credit, can often find less expensive alternatives.