Reverse mortgages are among the free for seniors financing options particularly for those with a home but without cash. The idea looks good on paper but there are some advantages and disadvantages that need to be considered before you sign up for it. Here is a senior citizen discounts list on the pros and cons of this type of financing.
Pros:
• One of the advantages is that there is often no tax charged on the income you get from this type of financing. Once it is approved, it is treated as a loan and therefore will not be taxed. However, it may be subject to some taxation or other charged, so you need to investigate.
• Even though this financing is designed to provide regular payments, it does not necessarily affect any other free for seniors social security arrangements.
• Another advantage is that the home owner gets to retain the title.
• It can be a great option for seniors who are homeowners who need to get out of a tricky financial situation.
Cons:
• You need to watch for hidden costs that some lenders charge.
• You need to find out how it will affect Medicaid eligibility and determine if it is worth it for you.
• Since you are giving away equity in exchange for cash, your value and net worth will decrease with time.
Taking a reverse mortgage can be beneficial particularly where you are cash strapped. You need to go through senior citizen discount lists for financing. Every option has unique pros and cons which may suit people in different situations.
Pros:
• One of the advantages is that there is often no tax charged on the income you get from this type of financing. Once it is approved, it is treated as a loan and therefore will not be taxed. However, it may be subject to some taxation or other charged, so you need to investigate.
• Even though this financing is designed to provide regular payments, it does not necessarily affect any other free for seniors social security arrangements.
• Another advantage is that the home owner gets to retain the title.
• It can be a great option for seniors who are homeowners who need to get out of a tricky financial situation.
Cons:
• You need to watch for hidden costs that some lenders charge.
• You need to find out how it will affect Medicaid eligibility and determine if it is worth it for you.
• Since you are giving away equity in exchange for cash, your value and net worth will decrease with time.
Taking a reverse mortgage can be beneficial particularly where you are cash strapped. You need to go through senior citizen discount lists for financing. Every option has unique pros and cons which may suit people in different situations.