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DC Fawcett Reverse Mortgage – Pros and Cons

A reverse mortgage is a loan that enables the people who are above 60 to avail of the loan into equity without selling their house. It is helpful for the senior citizens to stay in their homes while getting their retirement income.

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DC Fawcett Reverse Mortgage – Pros and Cons

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  1. Reverse Mortgage Pros and Cons - Dc Fawcett Real Estate Tips

  2. INTRODUCTION • Though house flipping is rewarded at the end of the day. • DC Fawcett had analyzed the market must face healthy competition. • Every buyer looks at the price, surroundings, and their convenience before buying the house. • However, if your house is mortgaged & you need funds, a reverse mortgage is one of the options.

  3. What is a reverse mortgage? • A reverse mortgage is a loan that enables the people who are above 60 • To avail of the loan into equity without selling their house. • The loan has to be repaid after the borrower relocates to another place or passes away.

  4. How does reverse mortgage work? • If a homeowner has no income or limited income and is not able to cover their expenses. • The reverse mortgage is the last resort. • In this type of mortgage, you need not repay the mortgage loan and interest fully.

  5. Reverse mortgages – pros and cons • Flexibility • Accessibility • Fewer chances of default • Tax-Free

  6. ADVANTAGES 1.Flexibility This is a very flexible option. which can be used in many ways for different types of borrowers 2. Accessibility It allows you to stay in your home as long as you want without any monthly mortgage payment.

  7. ADVANTAGE 3. Fewer chances of default In reverse mortgage cases, your house cannot be taken away from you on the grounds. That is the time you need to pay the insurance and taxes. 4. Tax-Free The reverse mortgage is free from all the taxes whether you receive it as a fixed an income or in a lump sum.

  8. Reverse Mortgage Disadvantages • Accumulating Interest • Limited access to home equity

  9. DISADVANTAGES 1. Accumulating Interest It is only suitable for those who want to stay in their house and improve their standard of living. 2. Limited access to home equity If you have a lot of home equity, you can only use a certain percentage of it which becomes very much frustrating.

  10. Conclusion • There are many advantages and disadvantages in the reverse mortgage. • However, beyond all the pros and cons, the reverse mortgage is not suitable for everyone.

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