Disadvantages Of A Reverse Mortgage For Family
Wednesday, February 11th, 2009A reverse mortgage is not for everyone. Literally, this type of refinancing is generally reserved for people 62 years of age or older. These types of loans are commonly used for retirement purposes. The loan can be received in monthly payments or in a lump sum.
Unlike a typical home loan, payments on a reverse mortgage do not have to begin immediately. As long as there are no outstanding mortgages due on the property, the borrower may use the money for anything. Since the funds do not have to be reinvested in the home as a home improvement and the funds are not required to be repayed until the owner moves or dies, all equity may be drained before the family is gifted the house.