Why you should NOT get a reverse mortgage.

Reverse Mortgages are expensive and may not be the best alternative for a Senior. The loan to value (LTV) dictates the amount a borrower can get either in a Lump Sum at closing or Monthly Payments For the reverse mortgage. Because the term of a Reverse Mortgage is unknown (may last as long as the borrower lives or the home is sold) the amount of the loan may be low relative to the home’s value: 50% or less. The higher the age of the borrower the better amount in terms of payments they receive. For example, if the borrower is 62 years of age the loan amount will be much lower then if the borrower is 85 years of age. Because of the risk factor, the lender will get a higher interest rate and usually charges points upfront increasing closing costs. The borrower should know all the details before taking a Reverse Mortgage and learn all options available. Call Cost-Effective Loans for answers to all questions.

Marty Weinstein

Broker / Owner at Cost Effective Financial 

For San Diego’s most trusted lender for over 35 years.
Email: marty@costeffectiveloans.com
Phone: +1 (619) 504-0828

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