{"id":1675,"date":"2022-09-09T16:02:08","date_gmt":"2022-09-09T16:02:08","guid":{"rendered":"https:\/\/applyreverse.com\/?page_id=1675"},"modified":"2022-09-19T21:15:04","modified_gmt":"2022-09-19T21:15:04","slug":"pros-and-cons-of-reverse-mortgage","status":"publish","type":"page","link":"https:\/\/applyreverse.com\/?page_id=1675","title":{"rendered":"Pros and Cons of Reverse Mortgage"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"1675\" class=\"elementor elementor-1675\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b80d0c7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b80d0c7\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9c5069b\" data-id=\"9c5069b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-696ee09 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"696ee09\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-fa87e01\" data-id=\"fa87e01\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a097e26 elementor-widget elementor-widget-heading\" data-id=\"a097e26\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.11.1 - 15-02-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">Pros and Cons of Reverse Mortgage<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-aa6b3de elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"aa6b3de\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-2a44704\" data-id=\"2a44704\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-dd0554b elementor-widget elementor-widget-image\" data-id=\"dd0554b\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.11.1 - 15-02-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"255\" height=\"300\" src=\"https:\/\/applyreverse.com\/wp-content\/uploads\/2022\/09\/Woman_6-255x300.png\" class=\"attachment-medium size-medium wp-image-1735\" alt=\"\" srcset=\"https:\/\/applyreverse.com\/wp-content\/uploads\/2022\/09\/Woman_6-255x300.png 255w, https:\/\/applyreverse.com\/wp-content\/uploads\/2022\/09\/Woman_6-870x1024.png 870w, https:\/\/applyreverse.com\/wp-content\/uploads\/2022\/09\/Woman_6-768x904.png 768w, https:\/\/applyreverse.com\/wp-content\/uploads\/2022\/09\/Woman_6-1306x1536.png 1306w, https:\/\/applyreverse.com\/wp-content\/uploads\/2022\/09\/Woman_6.png 1700w\" sizes=\"auto, (max-width: 255px) 100vw, 255px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-5945dd5\" data-id=\"5945dd5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2f92df5 elementor-widget elementor-widget-text-editor\" data-id=\"2f92df5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.11.1 - 15-02-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>What Are The Pros And Cons Of Reverse Mortgage?<\/p><p>-Helen<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-1765aec elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1765aec\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-e3fbe1b\" data-id=\"e3fbe1b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c7b9926 elementor-widget elementor-widget-text-editor\" data-id=\"c7b9926\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-19302393 elementor-position-left elementor-vertical-align-middle elementor-view-default elementor-mobile-position-top elementor-widget elementor-widget-icon-box\" data-id=\"19302393\" data-element_type=\"widget\" data-widget_type=\"icon-box.default\"><div class=\"elementor-widget-container\"><div class=\"elementor-icon-box-wrapper\"><div class=\"elementor-icon-box-content\"><p>A Reverse Mortgage Loan may provide the financial freedom that lets you live the retirement you desire, pay off medical bills, make home improvements, or just free up some extra cash. Weighing the benefits and risks is important before any major decision, so we have highlighted the potential pros and cons of a reverse mortgage loan.<\/p><p>According to\u00a0<a href=\"http:\/\/portal.hud.gov\/hudportal\/HUD?src=\/program_offices\/housing\/sfh\/hecm\/rmtopten\">HUD<\/a>, many homeowners ages 62 and older with sufficient equity in their homes may be eligible for a Home Equity Conversion Mortgage (HECM), or more commonly known as a reverse\u00a0mortgage.<sup>1\u00a0<\/sup>Seniors often choose a HECM loan because of the many benefits that fit with their lifestyle. The funds can be received in a lump sum payment<sup>2,<\/sup>, monthly payments, as a line of credit or a combination of these options, and homeowners will stay in the comfort of their own home all without making monthly mortgage\u00a0payments.<sup>3<\/sup><\/p><p>The proceeds are not taxed as income or otherwise (though you must continue to pay required property taxes); however, it is always best to consult your tax or financial professional. In addition, provided the home is sold to repay the loan, your heirs will not be personally liable if the loan balance exceeds the value of the home.\u00a0 Any remaining equity will go to your heirs.<\/p><p>Of course, there are potential drawbacks to consider as well. The balance of the reverse mortgage will increase over time and the value of the estate inheritance may decrease as funds are spent. Fees, including the loan origination fee, may be higher than with traditional forward mortgages. HECM fees also include the Initial FHA Mortgage Insurance Premium, as well as an annual MIP of 0.5%. Needs-based government programs may be affected by HECM loan proceeds.\u00a0 Therefore, you are encouraged to consult your trusted financial advisor and appropriate government agencies for any effect on taxes or government benefits.<\/p><h2>Pros of Reverse Mortgage<\/h2><ul><li><b>You can receive the funds in a lump-sum payment<sup>2<\/sup>, monthly payments, as a line of credit or in a combination of these options<\/b><\/li><li><b>You can stay in the home\u00a0without making monthly mortgage\u00a0payments<sup>3<\/sup><\/b><\/li><li><b>Proceeds\u00a0are\u00a0not taxed as income or otherwise (though you must continue to pay required property taxes)<sup>4<\/sup><\/b><\/li><li><b>Your heirs never have to repay more than the value of your home<\/b><\/li><li><b>Your heirs inherit any remaining equity after paying off the reverse mortgage<\/b><\/li><\/ul><h2>Cons of a Reverse Mortgage<\/h2><ul><li><b>HECM loan balance increases over time<\/b><\/li><li><b>Value of estate inheritance may decrease over time as proceeds are spent<\/b><\/li><li><b>Fees can be higher than a traditional mortgage<\/b><\/li><li><b>Initial FHA Mortgage Insurance Premium<\/b><\/li><li><b>Annual FHA Mortgage Insurance Premium<\/b><\/li><li><b>Loan origination fee may be higher than traditional mortgages<\/b><\/li><li><b>Although Social Security and Medicare eligibility are not affected by a reverse mortgage loan, needs-based government programs such as Medicaid can be affected in some states.<\/b><\/li><\/ul><p><small><sup>1<\/sup>\u00a0<em>Borrowers must also meet financial eligibility criteria as established by HUD.<\/em><\/small><\/p><p><small><sup>2<\/sup>\u00a0<em>This disbursement option is only available for a fixed rate loan.<\/em><\/small><\/p><p><small><sup>3<\/sup>\u00a0<em>You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.<br \/><\/em><\/small><\/p><p><small><em><sup>4<\/sup>\u00a0Generally, money received is not considered income and should be tax free, though you must continue to pay required property taxes. Consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.<\/em><\/small><\/p><\/div><\/div><\/div><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Pros and Cons of Reverse Mortgage What Are The Pros And Cons Of Reverse Mortgage? -Helen A Reverse Mortgage Loan may provide the financial freedom that lets you live the retirement you desire, pay off medical bills, make home improvements, or just free up some extra cash. Weighing the benefits and risks is important before &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/applyreverse.com\/?page_id=1675\"> <span class=\"screen-reader-text\">Pros and Cons of Reverse Mortgage<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"no-sidebar","site-content-layout":"page-builder","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","footnotes":""},"class_list":["post-1675","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/applyreverse.com\/index.php?rest_route=\/wp\/v2\/pages\/1675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/applyreverse.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/applyreverse.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/applyreverse.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/applyreverse.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1675"}],"version-history":[{"count":22,"href":"https:\/\/applyreverse.com\/index.php?rest_route=\/wp\/v2\/pages\/1675\/revisions"}],"predecessor-version":[{"id":2289,"href":"https:\/\/applyreverse.com\/index.php?rest_route=\/wp\/v2\/pages\/1675\/revisions\/2289"}],"wp:attachment":[{"href":"https:\/\/applyreverse.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}