We at MAK Financial Group love Reverse Mortgages. They are the answer to prayers for many, and we love to find customers who can benefit from this type of program. However, there are certain situations when other
options may be a better path.
When the Need is Temporary
The minimum recommended time period for a Reverse is 5 years. Anything less may be better served by another financial avenue.
Title in One Name
If your home only has one spouse listed on the title, a Reverse could be a financial gamble. Reverses are only in effect until the last person on the title moves out of the property permanently or passes away. This is a risky path for the spouse not listed on the title.
To Fund Annuities
Occasionally, life insurance salespeople will encourage homeowners to take out a Reverse Mortgage to purchase an annuity. Reverses actually have a built-in annuity feature known as “tenure” or “term” payments, and don’t require any additional commission. Be suspicious if you hear “Reverse Mortgage” and “Insurance Annuity” in the same sentence.
Very Low Property Value
Lenders collect their fees up front on Reverse Mortgages. If your property is worth less than $50,000, carefully compare fees charged versus your payout.
Contact our Reverse Mortgage Specialists at MAK Financial Group to determine whether this type of program is right for you.
