The Pros and Cons of Reverse Mortgages
Pros:
A reverse mortgage can help you stay in your home.
Pros:
A reverse mortgage can provide you with extra income each month.
Pros:
A reverse mortgage can give you access to cash advances.
Pros:
A reverse mortgage can increase your monthly Social Security payments.
Pros:
A reverse mortgage can give you a line of credit.
Cons:
A reverse mortgages can be costly. There are fees associated with getting one, and you'll also have to pay interest on the loan.
Cons:
Plus, the amount you're able to borrow will decrease over time, since the loan is paid back with interest.
Cons:
A reverse mortgages can affect your eligibility for government assistance programs down the road.
Cons:
If you take out a reverse mortgage and then need to go on Medicaid or Social Security, you could be in for a nasty surprise.
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