Understand The Reverse Mortgage Before Signing on the Dotted Line

Recent estimates state that as much as 30% of Americans own a home without any mortgage debt.  The majority of these people are seniors who are either retired or facing retirement.  Unfortunately, some of these people may be in danger of losing their home due to high property taxes, rising health costs or a major expense beyond their current means.  It is for these reasons that the reverse mortgage was invented.

Types of Payouts

Reverse mortgages allow borrowers to choose how they will receive the money.  They can receive monthly payments for a specific period of time. Or, they can get a major sum when the loan closes and get smaller monthly payments.  Or, they can get all of the available money at once in a giant sum.

Getting a lump sum can work for people that are shrewd money managers.  However, for people that may face future expenses of a large nature, a lump sum can be a problem.  Once the money is spent, there is no way to get another loan.

Be Aware of Second Marriages

A reverse mortgage does not have to be repaid until the borrower passes away or moves out of the home.  With second marriages, there could be another issue.  If a person is single when they obtain a reverse mortgage, their name is the only one listed on the deed to the home.  If they marry after the reverse mortgage and then pass away, it is possible that the surviving spouse can be legally removed from the home in order to sell it.

For additional FHA reverse mortgage information, please visit our Reverse Mortgage page!

Contact me below or apply online to determine if you qualify for a reverse mortgage!

Filed under: Illinois Blog, Reverse Loans

Luke Skar

Luke Skar is the web developer and content strategist for Inlanta Mortgage of Madison, serving WI, MN, IL, & FL. Guided by his 12-plus years of various mortgage marketing experience, Luke provides top-quality SEO services, effective social media management, and web development and maintenance. Luke’s career in the mortgage industry began back in 2001, as a loan processor. After becoming a loan officer for a number of years, Luke is now the sole owner/operator of madisonmortgageguys.com. To ensure that all the information he posts is fresh, accurate, and up-to-date, Luke relies on the knowledge which his years of dedication to keeping up with the constant change that the mortgage industry provides.

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