Sedona Homes Online

#1 Sedona Real Estate & Sedona Home Search - Sedona AZ Foreclosure Homes

(928) 451-6098
  • Home
  • Search
    • Featured Homes
    • Personal MLS Portal
  • Local Info
    • Service Providers
    • Utilities List
    • Sedona History
    • Schools
    • Real Estate Taxes
  • Buyers/Sellers
    • Buyers
    • Sellers
    • Why Work With A CRS?
    • Calculators
    • Arizona Buyer Advisory
  • Contact
    • About Troy & Susan
    • Sedona Real Estate Blog
    • Reviews
  • Search
  • What’s it Worth?
  • ContactGet in Touch
    • About Susan & TroyAll About Us
You are here: Home / Mortgage Guidelines / Reverse Mortgages : Pros And Cons

Reverse Mortgages : Pros And Cons

May 8, 2012 By Troy Deierling Leave a Comment

Despite several big-name banks pulling the product from their respective home loan offerings, reverse mortgages remain a popular mortgage choice among homeowners aged 62 or over.

A reverse mortgage is exactly what it sounds like — a mortgage in reverse. Rather than borrow a fixed amount of money then pay that loan balance down to zero as with a “forward” mortgage, a reverse mortgage starts at a given loan balance and works its way up as scheduled payments are added to the existing loan balance.

This 4-minute piece from NBC’s The Today Show highlights a few pros and cons of reverse mortgages, and the reasons why you may want to consider one, including :

  • No mortgage payments are ever due on your home
  • There is no credit check required for a reverse mortgage
  • There is no income requirement to qualify for a reverse mortgage

There are some basic qualification standards for the reverse mortgage program including a requirement that all borrowers on title must be 62 years of age or older; and that the subject property be a primary residence. Loan fees can also be higher than with a conventional-type mortgage.

If you meet the qualification standards, though, with a reverse mortgage, you have flexibility in how your home equity is distributed to you. You can receive a lump-sum payment, elect for monthly installments over time, create a line of credit, or a combination of all three. 

Like all mortgages, reverse mortgages are complex instruments. That’s one reason why all reverse mortgage borrowers are required to attend counseling — the government wants you to be certain that you understand the nuances of the reverse mortgage program.

Your lender will want you to understand the program, too.

Filed Under: Mortgage Guidelines Tagged With: HUD, NBC, Reverse Mortgage

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Contact Us

Sedona AZ Real Estate Broker Susan Deierling, ABR, CRS
Assoc. Broker
Realty Executives
Northern Arizona
Sedona AZ
(928) 451-6098 mobile/text/VM
(888) 494-0470 (US & Canada)
susan@sedonaemail.com

Contact Me | About Us

Sedona AZ Homes for sale Troy Deierling ABR CRS
Realty Executives
Northern Arizona
Sedona AZ
(928) 202-0700 mobile/text/VM
troy@sedonaemail.com

Contact Me | About Us

Contact Susan

Sedona AZ Real Estate Broker Susan Deierling, ABR, CRS
Assoc. Broker
RE/MAX Sedona
Sedona AZ
(928) 451-6098 mobile/text/VM
(888) 494-0470 (US & Canada)
susan@sedonaemail.com

Contact Me | About Us

Contact Troy

Sedona AZ Homes for sale Troy Deierling ABR CRS
RE/MAX Sedona
Sedona AZ
(928) 202-0700 mobile/text/VM
troy@sedonaemail.com

Contact Me | About Us
Realtor MLS HUD

Deierling & Deierling PLLC // All Rights Reserved Copyright © 2022 ยท Log in

Sedona home search

Sedona Homes Online Sitemaps | Post | Pages | Video | Category | Author | HTML

The data relating to real estate for sale on this website comes in part from the Sedona Verde Valley Multiple Listing Service (MLS). Listing broker has attempted to offer accurate data but is not guaranteed accurate by the MLS. All information presented is deemed reliable but not guaranteed. IDX is provided exclusively for consumer's personal, non-commercial use; and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Any use outside of this purpose is prohibited.