Reverse Mortgage Advertisements Portland

The Real truth In Reverse Mortgage loan Advertisements in Portland Oregon

Chances are you’ll notice alluring images of young-looking retirees on the golf course or taking part in other pleasurable activities in a reverse mortgage advertisement. A reverse mortgage is a unique kind of mortgage loan that allows Portland Oregon property owners 62 and older to borrow from the accumulated equity inside their properties. The reverse mortgage must be repaid when the borrower passes away, moves, or no longer lives in the house.

Seniors pointed out the advertisements made reverse mortgages seem like a great way to travel and enjoy retirement while they were still young and active. But Americans are living longer, more active lives than any other time. Reverse mortgage borrowers might outlive their loan proceeds by borrowing without careful planning.

Reverse mortgage advertisements don’t always tell the whole story, so consider these facts if you see ads:

1. A reverse mortgage is really a home loan, not a government benefit

Reverse mortgages have charges and compounding interest that has to be paid back, just like other home loans. With many reverse mortgages, federal insurance guarantees that borrowers will receive their loan funds should their mortgage provider has financial difficulty or if their home loan balance exceeds the value of their property. Even so, city borrowers pay for this insurance and it’s not a government benefit.

2. You can lose your property with a reverse mortgage

Any time a reverse mortgage advertisement states you’ll retain ownership of your house, or that you could reside there as long as you desire to, do not accept these messages at face value. Those statements are true provided that you continuously meet all requirements of the reverse mortgage. If you fall behind on your real estate taxes or property insurance, are absent from your home more than six months, or are not able to satisfy other conditions, you can trigger a loan default. If you don’t take care of the default in time, the mortgage company could foreclose on your house. Sometimes these requirements are listed in fine print, but not always. If you have a question about reverse mortgage specifications, speak to a HUD-approved housing counselor in Portland OR.

3. Without a good plan, you might outlive your loan funds

After seeing a reverse mortgage advertisement, you might think that the reverse mortgage guarantees your financial security regardless of how long you live. People in city state are living longer these days than they were just a generation ago. Be certain to have a financial plan in place that accounts for a long life. That way if you want to tap into your equity, you won’t do it too early and risk not having enough retirement resources in the future.

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