Reverse Mortgage Cons – Disadvantages You Need to Know

Reverse Mortgage Cons – Disadvantages You Need to Know,As of the end of June, total assets of the Federal Reserve from September 2008 an increase of 939 billion U.S. dollars to 2.1 trillion U.S. dollars. With the balance sheet of the Federal Reserve’s rapid expansion, the United States the amount of base money is also showing a rapid growth momentum, mainly due to a large number of quantitative easing policy of the purchase of securities, as of the end of June the amount of base money in September of last year from 905 billion U.S. dollars rose to 1.7 trillion U.S. dollars.

There are many reasons why you should think long and hard before obtaining a reverse mortgage. Some of the things that can be affected by it and not in a good way are your SSI check. This is Supplemental Security Income, not Social Security. Social Security is not affected by a reverse mortgage. SSI is given as a supplemental income to people with disabilities or the elderly with little or no income. In order to receive SSI a person can’t have more than $600 monthly income. A reverse mortgage is not considered under the federal government as income so that requirement doesn’t change. If the person getting the reverse mortgage gets a lump sum from it and doesn’t spend the whole amount immediately and puts over $2000 in the bank after 30 days SSI considers the money an asset and it would disqualify the person for SSI.

Medicaid is government funded and provides health care to low income people. The requirements to receive it are much the same as to receive SSI. But just as with SSI if a lump sum is received and more than $2000 remains in the bank for more than 30 days it becomes an asset and disqualifies the person for their Medicaid coverage.

The biggest costs in retaining reverse mortgages is the FHA mortgage insurance and the origination fee. The fees are higher than on a conventional because of the insurance costs.

Even with a reverse mortgage, you may be getting a monthly income but, the property taxes and insurance must continue to be paid. There are also limits to how much you can borrow on a reverse mortgage. Some other cons to reverse mortgages are they are only available to people age 62 or older, even if they are disabled. The reverse mortgage also reduces the amount of equity in the home and thus what the heirs inherit. The loan has to be repaid when the owner dies, does not use the home as a primary residence any longer or sells the house. Your heirs have to repay the remainder of the loan plus interest.

You are required by law to meet with a counselor who specializes in reverse mortgages before signing on the bottom line so they can also answer any further questions you might have.

Reverse Mortgage Cons – Disadvantages You Need to Know,As of the end of June, total assets of the Federal Reserve from September 2008 an increase of 939 billion U.S. dollars to 2.1 trillion U.S. dollars. With the balance sheet of the Federal Reserve’s rapid expansion, the United States the amount of base money is also showing a rapid growth momentum, mainly due to a large number of quantitative easing policy of the purchase of securities, as of the end of June the amount of base money in September of last year from 905 billion U.S. dollars rose to 1.7 trillion U.S. dollars.

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