Reverse Mortgage Advertising

The Truth In Reverse Home loan Advertising in West Linn Oregon

It’s possible you’ll notice tempting pictures of youthful retirees on the golf course or experiencing other fun activities in a reverse mortgage ad. A reverse mortgage is a unique kind of loan which enables West Linn Oregon property owners 62 and older to borrow against the accumulated equity in their houses. The reverse mortgage will need to be paid back once the borrower passes away, moves, or no longer resides in the home.

Seniors said the ads made reverse mortgages look like a great way to travel around and enjoy retirement while they were still young and active. Yet Americans are living longer, more active lives than ever before. Reverse mortgage borrowers may well outlive their loan proceeds by borrowing without careful planning.

Reverse mortgage advertisements do not always tell the entire story, so consider these facts if you see advertising campaigns:

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

Reverse mortgages have costs and compounding interest that needs to be repaid, the same as other home loans. With most reverse mortgages, federal insurance guarantees that borrowers will receive their loan funds should their lender has financial difficulty or if their home loan balance exceeds the value of their property. However, West Linn borrowers pay for this insurance and it’s not a government benefit.

2. It is possible to lose your home with a reverse mortgage

Whenever a reverse mortgage ad states you will keep ownership of your property, or that you can reside there as long as you wish to, don’t take these messages at face value. All of these claims are true only if you continue to meet all conditions of the reverse mortgage. Once you fall behind on your property taxes or property insurance, are absent from your property more than 6 months, or don’t fulfill other conditions, you could trigger a loan default. If you do not handle the default in time, the lender can foreclose on your property. Sometimes these conditions are listed in fine print, but not always. If you have a question about reverse mortgage specifications, contact a HUD-approved housing counselor in West Linn Oregon.

3. Without having a good strategy, you could potentially outlive your reverse mortgage money

Having seen a reverse mortgage ad, it might seem a reverse mortgage guarantees your financial security regardless of how long you live. People in West Linn Oregon are living longer these days than they were merely a generation ago. Be sure you have a financial plan set up that accounts for a lengthy life. That way if you want to tap into your home equity, you will not do it too soon and risk running out of retirement resources in the future.