Why is it better to do a reverse mortgage versus simply refinancing the house with a traditional mortgage?
Two reasons a reverse mortgage is better; First, with a reverse mortgage the senior doesn’t have to make monthly mortgage payments. With a traditional mortgage, monthly payments are required. Remember, with a reverse mortgage the principal and interest is not repaid until the borrower dies. If a married couple does a reverse mortgage, both must die ( or permanently move out of the house ) before the reverse mortgage must be repaid. The second reason a reverse mortgage is better is because there is no “income or credit qualifying” with a reverse mortgage. If the person is 62 or older, he/she qualifies irrespective of his/her income. With a traditional mortgage, a person must have good credit and qualify from an income standpoint to support the borrower’s ability to make the monthly mortgage payments.
