As you get older you’re forced to make many important decisions regarding the remainder of your life. This often includes deciding what to do with your home. Many people faced with this decision may consider to apply for a reverse mortgage for their home.
On the surface, reverse mortgages offer a multitude of benefits such as:
Staying at Home
With reverse mortgages you’re able to enjoy the ability to be able to stay at home as you get older. This can be an especially good thing if you’re in good enough health to be able to continue to occupy your home for many years.This way you’ll basically be paid for living in your home.
Learning Your Home’s Equity
Many people who bought their home many years ago may not be sure what the current value of their home is based on the market today. The process of getting a reverse mortgages allows you to gauge exactly how much your house is worth, which can assist you in deciding if it makes more sense to sell or apply for a reverse mortgage.
Leaving a Legacy
Many people like to keep certain residences in the family for many years so that their children, grandchildren, and even great grandchildren can enjoy a piece of the family’s heritage. Having a reverse mortgage means that you’ll be able to keep the home in the family for years to come if you pay off the loan accordingly.
While it may initially seem like a worthwhile idea, reverse mortgages can regularly create even more difficulties for the homeowner. These problems can present themselves in the form of:
High Fees and Restrictions Galore
When you decide to go through with a reverse mortgage, you’re faced with many strict restrictions and hidden fees. For example, even though you will not have to make house payments, you will still be responsible for paying property tax and homeowners insurance, which can be costly.
The interest rates associated with applying for a reverse mortgage are also often very high and can end up making the loan payments much more than the amount you would be able to sell your home for when you are ready to pay back the loan.
One of the biggest problems that come with reverse mortgages is that since they are often only available to elderly people, if the homeowner ever has to move to assisted living or is put in a situation where they are not primarily living in the house for at least a year, they will be expected to pay the loan back immediately.
If the restrictions that come with a reverse mortgage drive you away from the idea, there are plenty of other avenues that you can take, like selling your home for cash. Selling your home for cash has it’s own set of benefits like:
Get Instant Cash
Many people apply for reverse mortgages because they are strapped for cash and need an extra source of income. However, with reverse mortgages, you will eventually have to pay that amount back or go through the long and tiresome process of selling the home at a later date.
Instead, selling your home for cash allows you to skip the frustration involved with selling a home, like making renovations, paying realtors, and many other things. This avenue allows you to get fast cash on the spot that you don’t have to pay back.
No Need to Make Home Improvements
One of the most annoying parts of having to sell a home is making renovations to make it more appealing to potential buyers. When you sell your house for cash, it is bought in whatever state it is currently in, so you save money and make money at the same time.
Quickly Sell Your Home
Unlike selling your home with a realtor in order to pay off your debt, selling your house for cash allows you to completely skip all of the time it takes to sell a house the traditional way and have cash in hand quickly.
However, there are a couple of cons of selling your home for cash that you should consider like:
Inability to Leave a Legacy
If you sell your home for cash, you would be unable to keep the residence in the family. However, if this isn’t something that you planned to do anyways, selling your house for quick cash is a much better idea than getting a reverse mortgage.
Must Be Move Out Ready
If you decide to sell your house for cash, unlike when selling traditionally and taking the time to close a deal and move out when convenient, you have to be ready to move out in the near future if you want to be able to get the full amount you deserve for your property.
There are a lot of different approaches you could take when it comes to selling a home. This is why it is absolutely important that you’re able to unbiasedly weigh the pros and cons of the options that you have been presented with before committing to a reverse mortgage.
Want to avoid the stress that comes with figuring out the best way to make money from your estate? Avoid this process altogether by Calling us at 469-701-1666 or filling out our online form.