San Francisco, CA -- (SBWIRE) -- 07/23/2013 -- Many people use reverse mortgages to take advantage of the equity in their homes. A reverse mortgage pays the homeowner a certain amount every month based on the value of the home. Reverse mortgages are only available to homeowners age 62 and over and are primarily used as a way to generate income during retirement.

Reverse mortgages make sense for some people, but not others. As a website called ReverseMortgageDisadvantage.com explains, there are some important downsides to reverse mortgages. In fact, most states require reverse mortgage counseling prior to obtaining a reverse mortgage to ensure that the homeowner understands the full risks and benefits of the plan.

A spokesperson for ReverseMortgageDisadvantage.com explains the primary disadvantages of a reverse mortgage:

“Reverse mortgages come with a wide range of hidden fees that financing companies might try to obfuscate while advertising reverse mortgages. For example, homeowners are still required to pay for home improvements, property taxes, and repairs while the reverse mortgage is being paid out. Once the reverse mortgage hits the final payment, the house is sold and any closing costs and service fees are deducted from the amount of the loan. In other words, reverse mortgages might not be an ideal financial solution for some retirees.”

Another problem with reverse mortgages is that the value of the home can often be less than the value of the loan. In that case, the homeowner must pay the difference between the loan and the value of the home. Furthermore, if the homeowner dies while the reverse mortgage is being paid out, the remaining balance will be due immediately and any difference in value between the home and the loan will be due from the estate.

After educating visitors on reverse mortgage disadvantages, ReverseMortgageDisadvantage.com features a FAQ section where visitors will find the answers to common questions that many people have about reverse mortgages. The website aims to answer all of the basic and advanced questions that many visitors have about the reverse mortgage process:

“Our FAQ is designed to be as informative as possible. We explain the types of reverse mortgages available today as well as the ‘catch’ that many homeowners don’t realize when they first sign up for the mortgage. Once visitors are finished reading the information on the page, we direct them to official government websites where they can learn more about the reverse mortgage process.”

Whether signing up for a reverse mortgage today or exploring retirement options, ReverseMortgageDisadvantage.com aims to keep visitors informed on the most important advantages and disadvantages of reverse mortgages.

About ReverseMortgageDisadvantage.com
ReverseMortgageDisadvantage.com is an information website that explains the advantages and disadvantages of reverse mortgages. Reverse mortgages are available to homeowners over the age of 62 and helps homeowners leverage the equity in their properties. For more information, please visit: http://www.reversemortgagedisadvantage.com