In the previous few blog posts that we’ve posted on our website, we have always babbled good words about the HECM reverse mortgage in Mahwah, NJ. Now it is time to bring balance to the universe and show you some of the downsides of getting a reverse mortgage loan. Note that this does not in any way mean that you should not consider purchasing a reverse mortgage loan. Rather, we just want you to know the other side of this financial tool too.
1. It Costs More Than a Simple Loan Option
It is imperative that you must be informed that a reverse mortgage is costlier than other loan options. In a reverse mortgage, the amount that you owe to the lender keeps compounding every month. So if you want money for your short term needs, then you must consider taking out a loan rather than buying a reverse mortgage.
2. Your Home Can Be Foreclosed
No matter what the reverse mortgage lender says, it is true that your home can be sold before you depart from this world. The lender can only sell your house if, and only if, the borrower fails to pay property taxes, home insurance premiums or keep the house well maintained. The lender can also sell the house of the borrower if they are not present in the house for a consecutive 12-month period. For instance, if you are admitted to the hospital for more than 12 months, then the lender can and will sell your house to recover the amount lent.
Longbridge Financial is a reputed HECM reverse mortgage in Mahwah, NJ. It is approved by the Federal Housing Administration (FHA) and operates in 46 states and is committed to providing financial peace of mind to the elder generation.
