Selling Property Outright vs. Getting a Second Mortgage vs. Getting a Reverse Mortgage: What to Consider
When it comes time to sell your property, you have a few different options available to you. You can sell the property outright, get a second mortgage, or get a reverse mortgage. Each option has its own set of pros and cons that you need to consider before making a decision.
Selling Property Outright
If you sell your property outright, you will get all of the money from the sale. You can use that money to pay off any outstanding debts on the property, or you can use it for anything else you want. The downside to selling property outright is that you will no longer own the property. If you later decide that you want to own a home again, you will have to go through the process of buying a new one.
Getting a Second Mortgage
If you get a second mortgage, you will be able to keep your property and still get some money from the sale. The money you get from the sale can be used to pay off the outstanding balance on your first mortgage. The downside to getting a second mortgage is that you will have two mortgages to pay off instead of just one. You will also have to make two sets of monthly payments.
Getting a Reverse Mortgage
If you get a reverse mortgage, you will be able to stay in your home and not make any monthly payments. The money you get from the sale of your property will be used to pay off your mortgage balance. The downside to getting a reverse mortgage is that you will not have any equity in your home. Once the mortgage is paid off, you will not own your home outright.