Just recently, I had a problem on how to finance my
real property improvement, which is basically is an old house needing renovations. The said house was very sentimental that selling it was my least option. I did not wish to apply for a new mortgage for this entails new financial obligation, so I resorted to reverse mortgages.
The decision was very timely because I need not leave my house at all. I simply converted part of my house's equity to cash which I used to pay for the services for the much-needed renovations. Unlike a regular one, in reverse mortgage, I got money from my lender without leaving my house. I need not worry also about monthly
mortgage dues provided that I stay in the same house. Payments shall be done upon my death, selling of the house, or change of residential home.
Advances in loan under this type of mortgage freed me from taxes. Such advances did not in any way affect social and health benefits. However, I was told that the amount to be paid later tends to grow as time progresses. Likewise, interest and many other fees will be set and charged by the lender. Furthermore, this mortgage may use not only part, but all of my house's equity. While
reverse mortgage may help at a certain period of time, it is a good idea to pay settle it before it is too late and many complications shall arise.
