December 30, 2022

Reverse Mortgage vs Selling Your Maryland Home

Retirement is an exciting time in a person’s life, but there are also concerns over how to maintain the same lifestyle. Some older adults consider taking out a reverse mortgage so that they can stay in their home and/or sustain their same life. But is a reverse mortgage really the best option? 

When considering whether or not to take out a reverse mortgage, there are pros and cons to be aware of. Let’s cover what they are, and why selling your house for cash in Maryland might be the better option. 

What are the Pros to a Reverse Mortgage? 

A reverse mortgage is a loan borrowed against the equity you have in your home. Instead of paying the bank each month to build up equity, the bank pays you in a series of installments. Reverse mortgages work well for paying off debt or covering home improvements.

The advantages to a reverse mortgage are: 

• You can stay in your current home, though you will be responsible for maintaining the home and keeping current with property taxes and homeowners insurance.
• You can increase your cash flow in a variety of formats: a lump sum, monthly payments or a line of credit. This way, you can sustain your lifestyle, travel or pay your medical bills. 
• You can make improvements around the home so that it’s more conducive to aging in place, or tackle projects that you didn’t get to years ago. 

What are the Cons to a Reverse Mortgage? 

Even though a reverse mortgage can give you additional income during your retirement years, there are some drawbacks to be aware of. 

• You’re still responsible for maintaining the home, which can become more difficult as you age.
• There are several costs associated with taking out a reverse mortgage such as origination, appraisal, title and insurance fees. These fees can be rolled into your loan or paid out of pocket. 
• The loan must be paid back. This typically happens when you go to sell your home – you can use the proceeds to pay back the lender. 

When Selling Your Maryland Home is the Best Option

If you need extra cash and/or want to maintain your same lifestyle, selling your house for cash may be the better option. You won’t get to keep your home, but you can buy something that’s smaller and easier to maintain. Additionally, you don’t have to worry about using the money for repairs or maintenance, and you can even set money aside as an inheritance for your adult children. 

4 Brothers Buy Houses buy homes throughout Maryland. We will provide you with a free, no obligation offer, and if you accept, we can close in about two weeks. We purchase homes as-is, so there is no need to worry about appraisals, inspections, repairs, closing fees and more. The transaction is direct and between you and us! 

To get a free cash offer on your Maryland property, contact our cash buyers today! You can then see if a cash sale is the best option for your retirement.