Reverse Mortgage Pros & Cons

When discussing advantages versus disadvantages with reverse mortgage pros and cons, it really boils down to the information being communicated properly between the lenders and the homeowners. Many senior homeowners who have been successfully paying their mortgage payments for years have built a lot of equity in their home. Unfortunately, a lot of retirees have not set aside enough money to live off of comfortably as the years go by. They are not working, so they find it almost impossible to borrow money and at their age, their options to make money are limited. This is where the reverse mortgage comes into play along with the discussion of reverse mortgage pros and cons for the homeowners.

Reverse Mortgage Pros

In retirement... Living stress free, from a financial standpoint, is everyone’s goal and is one of the reverse mortgage pros for individuals who have built up good equity in their home over the years. A reverse mortgage loan is a financial pathway to give options and add flexibility for senior homeowners to provide a solution to create financial independence in their retirement years. 

There are several reverse mortgage pros for senior homeowners. It helps to secure their retirement better financially. It allows them stay in their home versus trying to sell it and downsize to generate money. They can pay off their existing mortgage. They can pull cash out or set up lines of credit with a reverse mortgage. They do not have to pay taxes on any of the money received, so they have no tax liabilities. Also, they are protected if their balance were ever to succeed the value of their home.

Reverse Mortgage Cons

The biggest of reverse mortgage cons is a lack of information. One of the reverse mortgage cons is that homeowners end up working with lenders who are putting them in loans that are more profitable to the lender without any concern of what is in the best interest of the homeowner. Another of the reverse mortgage cons is that certain mortgage companies and their branch offices operating under them, only provide reverse mortgage loans under their corporate veil.

When lenders have access to only certain loans, their loan offers can not offer the homeowner ones that may be better for them and most times do not make the homeowner aware of other options, fearing that they may lose them as a customer, and thus, not make a commission. The worst of the reverse mortgage cons is when a homeowner ends up engaging and working with a reverse mortgage scam.

Jumbo Reverse Mortgage Pros And Cons

If we look into jumbo reverse mortgage pros and cons, you will better understand if this loan is beneficial to you and your financial situation. A jumbo reverse mortgage allows senior homeowners to eliminate their monthly payment on their mortgage and gives them the ability to stay in their home in high cost areas of living. This is just one of the jumbo reverse mortgage pros.  Other jumbo reverse mortgage loan pros are there are no insurance premiums, which gives them relief from having to pay any upfront or continual mortgage insurance premiums. Most jumbo loans are non-recourse loans, which further protects the homeowner from having to pay any money in case their jumbo loan balance exceeds their home's value. This is one of the most important advantages of the reverse mortgage pros. You will find jumbo reverse mortgages in California more than any other state due to higher homes values in general in California.

As far as the jumbo reverse mortgage cons, the homeowners may have to pay higher interest rates.  Higher interest rates may cut into your home's equity faster, but the jumbo reverse mortgage does not require insurance premiums which helps to balance out the cost of the loan for the homeowner. There are also more predatory practices done in the jumbo loan division because of the higher. Homeowners will be leaving less equity in home for their heirs, however if no jumbo reverse mortgage was ever done in the first place, they may have had to rely on financial support from those same individuals anyway. Having less stress and more financial freedom will usually take this reverse mortgage con and turn it into a reverse mortgage pro in the long run..

More often than not, jumbo reverse mortgage pros and cons will favor more on the pro side if the lender actually takes time to get to know their client, has access to all of the jumbo reverse mortgage programs, makes sure they are qualified and is dedicated to finding the best jumbo program fit for their client with each and every loan.  Green Monarch reverse mortgage in Orange County Ca, specializes in California jumbo reverse mortgage loans. Green Monarch can provide the lowest rates and has access to all of the reverse mortgage programs in the state, which makes them a great go to company for anyone looking to refinance jumbo reverse mortgages in California. available. On top of that, Green Monarch takes great pride in being considered the #1 rated California reverse mortgage company when it comes to their level of customer support they provide their clients throughout the entire jumbo loan process.