Depending on whom you may talk to about about reverse loans, you will get many different opinions as to whether or not they are awful, wonderful or somewhere in between these two poles of opinions.
There is a number of inquires that come up on the Internet from people who are searching for information about these unique loans. And some of them are as follows:
- reverse mortgage cons
- simi valley reverse mortgage
- reverse mortgage disadvantages
- reverse mortgage companies
These are just a few of the searches that come up and of course there is more of them than I can list here.
The one that I didn’t see is “the loan of last resort”. At one time, the typical borrower was a senior who was running out of money to live each month and had no other resources for funds. And originally these types of borrowers were quite common.
And thus the term “the loan of last resort” was coined. But it’s incorrect these days because they are now being used to protect ones’ retirement savings from being rapidly drawn down, paying off an existing mortgage or buying a new home.
Reverse mortgages are the same as a traditional home mortgage, with the exception that the borrower is not obligated to make mortgage payments each month. Keep the home insured pay the property taxes and keep the home in good repair.
What are the typical objections to reverse loans? The equity is being drawn done ( but not necessarily) and their closings costs and fees are expensive.
I will go over these two concerns in my next post and the negative image this mortgage has with professionals and others.