Pros & Cons

Blank-list-of-pros-and-cons-square-1024x1017Pros of Reverse Mortgages

  • Provides flexible disbursement options (i.e. monthly or line of credit)
  • Homeowner stays in the home without making monthly mortgage payments*
  • Eliminate any existing mortgage
  • Heirs are not personally liable if payoff balance exceeds home value
  • Heirs inherit remaining home equity after paying off the reverse mortgage loan
  • Proceeds are tax-free**
  • Interest rates may be lower than other options

Cons of Reverse Mortgages

  • Value of estate inheritance may decrease over time as proceeds are spent
  • Fees are typically higher than with a traditional mortgage, such as the following:
    • Initial Federal Housing Administration (FHA) mortgage insurance premium
    • Ongoing FHA mortgage insurance premiums
    • Loan origination fee
  • Although a reverse mortgage loan generally does not affect eligibility for Social Security and Medicare, needs-based government programs such as Medicaid may be affected**
  • Reverse mortgages are not well understood by many people

 

*You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance and maintain the home according to Federal Housing Administration requirements.

**Consult your financial adviser and appropriate government agencies for any effect on taxes or government benefits.

Homeowners are responsible to pay property taxes, homeowners insurance and when applicable, flood insurance and HOA dues.  This information was not produced by HUD or FHA and the information was not reviewed or approved by the Department or Government Agency. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs.  It is not intended in any way as financial, tax or legal advice.  Consult a professional tax adviser.

Do you have a question?

We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. Or call 512-843-8913. We guarantee your privacy.


Friendly, warm, compassionate and understanding.

Lori and her team were able to complete my mortgage - start to finish - in 23 days. That is...

Jennifer Flinton

5.0
2015-12-21T09:36:16+00:00

Jennifer Flinton

Lori and her team were able to complete my mortgage - start to finish - in 23 days. That is unheard of in this industry where it normally takes 30-60 days, minimum. They were also able to help me write up not one, not two, but four offers on houses within that time period, providing the necessary paperwork promptly each time. But most importantly, Lori and her team were friendly, warm, compassionate, and understanding, on top of being professional and efficient. I cannot recommend them highly enough.

Profoundly knowledgeable and professional.

We have had the distinct pleasure of working with Lori on multiple mortgage needs over several years. On each occasion...

Frankie & Melinda Waller

5.0
2015-12-21T09:37:22+00:00

Frankie & Melinda Waller

We have had the distinct pleasure of working with Lori on multiple mortgage needs over several years. On each occasion we have found her to be profoundly knowledgeable and professional, while at the same time being a joy to work with due to her enthusiasm, pleasant personality, and warmth.....Thank you Lori for all that you do!

Thank you so much!

Lori Anderson, Ashlynn Kelso, and the team @ Georgetown Mortgage, I know how lending guidelines make any conforming loan a...

Landon Smith

5.0
2015-12-21T09:38:11+00:00

Landon Smith

Lori Anderson, Ashlynn Kelso, and the team @ Georgetown Mortgage, I know how lending guidelines make any conforming loan a difficult process these days. I truly believe these two refi's wouldn't have been this smooth, or closed at all, anywhere else. I have, and will continue to refer anyone looking for a loan in TX to you guys. Thank you so much!

She used technology to make us feel like we’re in the same town.

We cannot speak highly enough of our experiences in working with Lori Anderson to arrange financing for our new home....

John and Carolyn Drummond

5.0
2015-12-21T09:39:36+00:00

John and Carolyn Drummond

We cannot speak highly enough of our experiences in working with Lori Anderson to arrange financing for our new home. For most of the process, we were in a different city from Lori, but she used technology to make us feel like we're in the same town. We felt as though we had a personal relationship with Lori. She could not have been more supportive, patient, and positive. I encourage anyone purchasing a home to contact Lori Anderson.

We couldn’t be happier.

A big thank you to Lori Anderson and her team. We couldn’t be happier with Georgetown Mortgage.

Ruben and Laura Vela

5.0
2015-12-21T09:40:09+00:00

Ruben and Laura Vela

A big thank you to Lori Anderson and her team. We couldn’t be happier with Georgetown Mortgage.
5.0
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Thrive Mortgage | NMLS# 285739 | 4819 Williams Dr. Georgetown TX 78633 | P: 512-843-8913 | F: 866-821-1149
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