Advantages and Disadvantages of Reverse Mortgage...

These days, reverse mortgages is attracting more and more senior citizens. But, before going for it, you must know its advantages and disadvantages so you don't suffer in future.

Advantages of Reverse Mortgage:

• You can never owe more than your home's value, even if the lender has paid you more than home's value.
• The money you get from Reverse Mortgage is tax free.
• You can spend the money anyway you want. There are no restrictions but you should clear you previous mortgage or debt on your home first.
• There are no income or credit history qualifications for a reverse mortgage.
• You don't have to make any repayments while living in your home.

Disadvantages of Reverse Mortgage:

• Interest rates are usually higher as compared to other home loans.
• Funds from Reverse Mortgage may affect you social security or other benefits and can also affect your eligibility for pension.
• You can have Reverse Mortgage on your primary residence only.