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Four reasons why a reverse mortgage is not a sound idea

Four reasons why a reverse mortgage is not a sound idea

A reverse mortgage is a loan taken against the value of the home (equity) to meet certain expenses, debt obligations, and even supplement income during a financial crisis. It allows homeowners to convert a part of their home value into cash for expenses and retain the ownership of the property simultaneously. However, reverse mortgage eligibility and feasibility are quite complicated and there are times when it is not a good option, especially for seniors (common applicants for a reverse mortgage) above the age of 60. Here are a few reasons why.

  • Home eligible for inheritance
    Senior homeowners can benefit from reverse mortgage eligibility only if they can take a loan against their home and repay the same in a timely manner. However, in case the homeowner passes away and the property is inherited by their children, who might not be in a financially sound position to repay the impending mortgage. The inability to do so can result in selling the property to repay the outstanding debt and in the process lose complete ownership. So before taking a reverse mortgage, homeowners must account for the financial status of the people who will inherit the home in the future.
  • Sharing owned property
    People living on the property are forced to vacate it in case the owner is unable to repay the reverse mortgage. This means every occupant of the house, including relatives, family, and even close friends living temporarily may suddenly find themselves on the streets. There is absolutely no harm in considering a second mortgage when the owner lives alone and has the means to repay the loan. Otherwise, it is a risky venture for people who share their living space and are not in a financially sound position.
  • Paying additional expenses
    Along with repaying the reverse mortgage, you also have the responsibility of paying property taxes and premiums of homeowners’ insurance. As the mortgage is in the owner’s name, the burden of paying for the new expenses also falls on the person whose name appears on the property title deed. In the case of a Home Equity Conversion Mortgage (HECM), one of the most popular types of reverse mortgage, the borrower must pay an additional premium on top of the insurance and taxes to secure the funding.
  • Capped loan amounts
    Understand that homeowners might not get a third or in some cases, even half the value of the home equity with a reverse mortgage. Most of these amounts are capped by banks and financial institutions, especially with a HECM loan. Unless it is absolutely necessary, senior homeowners should avoid taking a reverse mortgage and risk losing value in terms of equity. Another drawback is that homeowners are forced to comply with stringent repayment rules regarding the mortgage. The interest alone will keep accruing on the unpaid balance of the loan taken every year. This makes it an expensive option especially for people who are retired.

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Stay at the top of your health game with these 4 tips

Stay at the top of your health game with these 4 tips

Think of the human body as a car. Pouring the cheapest gasoline (unhealthy food) in a car can damage the engine (bodily organs). Instead, if you can take care of yourself by committing to fitness via proper nutrition, it can take you a long way. In a recent study, it was found that approximately 55 percent of people derive daily calories from refined and processed foods. This can be counterproductive as these foods are full of unhealthy fats and devoid of essential nutrients. How are fitness and nutrition related to each other? Fitness and nutrition go hand in hand. Consuming foods containing healthy nutrients enables your body to function in a way conducive to physical and mental well-being. You may find yourself becoming more active, and burning calories off in a healthy manner. If you continue to maintain an exercise routine without getting adequate nutrition, it will have an adverse effect. So, here are some useful tips that can help you to be at the top of your health game: Keep a tab on your calories This is one of the smartest tips to stay healthy. Several diet plans focus on the number of calories that need to be eaten each day.
7 facts everyone must know about gout

7 facts everyone must know about gout

Affecting an incredible eight million-plus people in the United States, Gout is a serious form of arthritis that causes insurmountable pain in the joints. The condition, which is one of the oldest prevailing medical illness in society, develops due to the accumulation of uric acid in the joints, mostly troubling overweight adults and men. Delving further, here are seven must-know facts about this condition. In women, it is more common after menopause Gout basically occurs due to the accumulation of uric acid, which then forms needle-shaped structures in the joints and leads to pain, inflammation, and redness. Estrogen, a hormone found in women, naturally leads to uric acid being released through urine. However, after menopause, their estrogen levels start to drop, which makes the uric acid content in their blood rise. Gout can take birth even with normal levels of uric acid While most patients suffering from gout have a high concentration of uric acid in their bloodstream, some gout attacks can even occur with normal uric acid levels — a rare condition termed as asymptomatic hyperuricemia. Alcohol increases its risk Along with meat, fish, and poultry, alcohol consumption drastically increases the chances of developing gout. This is because alcohol has a high content of purine, a chemical compound that breaks down into urea in the body.
Top 4 reasons for unnatural hair loss patterns

Top 4 reasons for unnatural hair loss patterns

Hair loss is a natural process that automatically gets rid of old tissue and hair to promote new growth. So don’t be alarmed when you do find a few strands of hair tangled in your comb. However, a clearly visible scalp and a receding hairline are indicative of developing the problem of permanent hair loss. There are several internal and external factors that can accelerate hair fall, leading to pattern baldness in both men and women. Here are the top four reasons that trigger unnatural hair fall. Stress Stress ranks among the top risk factors associated with many medical conditions. In fact, one way or the other, taking physical or psychological stress harms the body more than you can imagine. For hair loss, especially, excessive shedding starts right after the body undergoes physical or psychological distress. A few examples include experiencing high fever, blood loss due to accident or injury, or even post-surgery recovery can result in stress that causes hair loss. Stress, coupled with anxiety, results in accelerated hair loss. To cope with this problem and reduce its effects, stress management is of crucial importance. Hormonal changes Men and women both experience hormonal changes throughout their lifetime. However, an imbalance associated with various conditions can trigger hair loss.
Learn about these 3 types of hearing loss

Learn about these 3 types of hearing loss

Hearing loss, deafness, or impairment is the partial or total inability to hear sounds. People with low to moderate hearing impairment face challenges in understanding what the other person is saying in a noisy environment. Whereas, people with severe deafness cannot hear anything, and rely completely on lip-reading and sign language skills. There are three main types of hearing loss: sensorineural, conductive, and a combination of both. Let’s understand these types in detail and learn about the causes, symptoms, and treatments of each type. Sensorineural hearing loss It’s the most common type of hearing loss. Sensorineural is permanent hearing loss often caused by damage to the tiny hair cells that line the inner ear or the auditory nerve. The damage stops or weakens the transfers of nerve signals to the brain. These signals are essentially the intensity and clarity of sounds. Causes: Aging and exposure to loud noises for a long period of time are the most common cause of the damage. Certain medications and illnesses can also increase risks. It can even be genetic, and pass on to the child in the mother’s womb. Treatment: There is no medical or surgical treatment available to repair the tiny hair cells once they’re damaged.
Simple lifestyle changes that reduce the risk of heart diseases

Simple lifestyle changes that reduce the risk of heart diseases

The heart is the most crucial organ in the body and as the system will cease to function if the heart stops or loses momentum pumping fresh oxygenated blood. This is why it is vital to not neglect your heart health at all and responsibly maintain a healthy, stress-free, and more importantly, a happy lifestyle. Here are a few simple lifestyle changes that will help support a healthy heart function. Switch to a healthy diet Avoid eating foods that are rich in trans and saturated fats. Most foods you find on the shelves of the supermarket contain large quantities of one or the other. Instead, switch to low-fat high fiber alternatives to help manage cholesterol. Maintaining a healthy cholesterol level in the body automatically reduces the risk of heart diseases. The simple reason for this is that fats that normally block major arteries and blood vessels are eliminated from these foods choices. It is also advisable to limit the salt (sodium) intake to control blood pressure and sugar to reduce the risk of diabetes simultaneously. Change certain lifestyle habits Reduce the number of alcoholic or carbonated drinks you have regularly. For men, it is advisable to have not more than two drinks and day and women must have only one.

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