The Pros And Cons Of Getting A Reverse Mortgage Loan For Your Pagadian City Zamboanga Home
For most senior citizens, a reverse mortgage loan is one of the most useful financial products that they can use in their old age. They can utilize proceeds that they will get from the reverse mortgage loan to provide them with extra income, to cover the living expenses that they incur within a specific period of time, or pay for their health care.
This type of mortgage loan is the perfect option for those senior citizens who do not plan to move from their houses in Pagadian City Zamboanga. Aside from that, it is also perfect for an older individual who can afford the cost that he will incur to maintain his home as well as someone who wants to get access to their home equity in order to have available cash.
However, before you even decide to apply for a reverse mortgage loan, you should understand the various pros and cons of getting one first. Here are some of the pros and cons.
Pros
- The money which you will get from this loan will pay off the balance of any existing mortgage that you have.
- You may also use the money to settle unexpected costs or unwanted debts.
- Your monthly cash flow will increase.
- You, the borrower, will not be required to make monthly payments to the lender. Instead, the lender will pay you.
- The proceeds of such loan are non-taxable. This means that you get the whole amount.
- You will be able to keep the title of your home in Pagadian City Zamboanga and retain ownership to it, as long as you follow the loan agreement.
- Even if there is a decline on the value of the home, you will not owe any more than what it is worth.
Cons
- You must live in the house and pay homeowners insurance as well as property taxes.
- A vacation home or any other investment property does not qualify for this type of loan.
- You should have sufficient equity for your Pagadian City Zamboanga home.
- You can expect high fees and closing costs.
These are only a few of the pros and cons. These things should help you with your choice. You should compare these things first before you proceed with your decision.
