Reverse Mortgages' Pros and Cons Reviewed In New Loan Love Guide
SAN DIEGO, July 10, 2013 /PRNewswire-iReach/ -- LoanLove.com, a website with the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and U.S. financial landscape in order to help them obtain a home loan that they will love, helps their readers to understand pros and cons of reverse mortgages. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals. To fulfill this goal LoanLove.com is continually updating their website with new articles and guides. The new guide helps senior homeowners to understand the risks and benefits of taking out a reverse mortgage.
The article on LoanLove.com says: "Reverse mortgages are attractive to many seniors, and there are good reasons: You don't need income to qualify, there are no monthly payments and the lender cannot force the homeowner to sell their home to repay the loan, which means the borrower can continue to live in the home for the rest of their lives. But because mortgages are such complicated lending instruments – and reverse mortgages can be even more complicated than other types of mortgages – many seniors apply for and receive these loans without really understanding the full implications. As a result, many senior advocates view these loans cautiously and say the prospect of seniors being taken advantage of is high."
So, while there are many reverse mortgage benefits, there are also some things that older homeowners need to be aware of before going in for this option. One of the most obvious draw backs to this type of loan is the fees associated with them, which are often much higher than with conventional loans. Sometimes these fees are not paid up front, but are instead included in the mortgage, which means that there will be less equity to draw on. As mentioned previously, there is also the risk of seniors being taken advantage of by some lenders. They may try to charge the elderly home owner for their financial guidance, which is actually prohibited by law.
Another thing that many elderly home owners may not fully understand is that the home they live in and possibly paid for over many, many years will no longer truly be theirs. Of course, they can still live there and make renovations as they see fit; but if they decide they want to move or change their minds and want to leave it in their will, those will no longer be options.
However there are some great benefits of reverse mortgages. The Loan Love article says: "Still, after all is said and done, there are some things that need to be said in support of reverse mortgages. First of all, just because some lending concepts may be difficult for seniors (and, let's be honest, even non-seniors) to understand, that doesn't mean all seniors are unable to understand exactly what they're getting into. Secondly, for seniors who need cash for bills or other expenses, reverse mortgages may be their only option, and having options is a good thing. Finally, while a lot of children oppose the loans on the grounds that the bank will end up with the home in the end, there's no law that says a home is there to be inherited, and when it comes down to it, a senior of sound mind should be able to have access to loans just like a younger person. Reverse mortgages are an option that makes that possible."
For more information on reverse home loans and other types of loans, please visit LoanLove.com.
Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, email@example.com
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