The Magnificent Pros of Getting a Reverse Mortgage Loan
Do you and your spouse currently own a home? Are you both approaching 62 years old and want to have spendable cash when you retire? Don’t worry because you can still apply even though you’re already retired. It’s called reverse mortgage funding or loan, and it has tons of benefits. Of course, it also has its own disadvantages. But the pros surely outweigh the cons this time. Thankfully, The Reverse Mortgage Group can help you choose the right reverse mortgage loan for you. Meanwhile, let’s learn its benefits to know if it’s the right choice for you and your family.
You Don’t Have to Move Anymore
Just because you’re retired doesn’t mean you need to sell your home to find a cheaper place. If you’re currently facing this dilemma, then a reverse mortgage just might be your answer. Since these are available to people aged 62 years old and above, getting this loan allows you to age in place. So you won’t have to move out anymore. And sure, there will be a cost when you get a reverse mortgage loan. However, it’s cheaper compared to moving out, getting a new place, or renting in a new location where you have to start anew.
You Don’t Have to Pay Any Taxes on the Funding
Everything has taxes nowadays. Just by ordering food, you’re already paying taxes that are added on top of your total bill. So if you hate paying taxes, you don’t have to worry about any of that when you get a reverse mortgage loan. It simply means that the funds you get from this loan aren’t taxable by the IRS because they consider them as loan proceeds. However, loans and tax laws can be complicated. So you’ll need to hire or see a tax professional before taking out a reverse mortgage loan just to be on the safe side.
The Loaner is Protected if the Balance Exceeds the Value of the Home
There are times when the reverse mortgage balance grows in size, especially if it exceeds the home’s fair market value over time. But don’t you worry because the debt that you must repay will never exceed the property’s value. That’s because a reverse mortgage is also an example of non-recourse financing. Therefore, the mortgage lender doesn’t have any claims over your assets or heirs in this scenario. Overall, you’re protected and you can live in peace with the money you received from the loan.