Reverse mortgages, Tallahassee, FL are one of the options you can take when shopping for a home loan. But what exactly are the benefits of this particular type of loan? Read on… as in this post, we will be discussing some benefits of reverse mortgage, which might help you decide whether to go for it or not.
You remain the owner of your property. As opposed to the popular belief that the lender takes ownership of your property, a reverse mortgage allows you to remain as the owner of the property, provided you comply with the terms of the loan and faithfully pay your taxes and insurance.
Monthly payment not needed. This is why reverse mortgages are attractive to borrowers. There is no monthly premium; payments are made to you instead; that is, as long as you live in your home. Indeed, quite different from a traditional forward mortgage.
Housing market protection. You do not need to worry if there are market declines on mortgage as you are protected. The reason is that reverse mortgages, Tallahassee, FL are insured by the government. With federal insurance, there is greater security. If the loan ends up to an amount that is more than the value of the home when sold, the government will shoulder the difference. That means to say, the loan will be paid in full using only the proceeds your home sells for, and no more.
There are several options of disbursement. Lenders acknowledge the fact that each and every senior has different needs; thus, several disbursement options are available for you to choose from. You can choose to receive funds in full or partial sum, monthly payments, a line of credit, or a combination of any of the choices.
Medicare and Social Security benefits are not affected. Government benefit programs that do not test financial resources, such as Social Security and Medicare, are not affected by reverse mortgages. The reason for this is that reverse mortgages are considered loan proceeds and not income.
