Category: Finance

Reverse Mortgage: Pros And Cons

Reverse Mortgage: Pros And Cons

A reverse mortgage is the complete opposite of a mortgage, which you can probably figure out just by looking at the word ‘reverse’. It has its pros and cons just like every other thing. If you are interested in learning about it then you have come to the right place. This article will tell you about all the pros and cons of a reverse mortgage.

Pros

A reverse mortgage allows the borrower to get money which could be a lump sum amount or it could be received periodically over time. This money is a loan which needs to be paid back once the borrower dies or decides to move out of the house. You do not have to worry about paying back the amount till you are living in your house, and the more equity your house has the more money you can get for it.

To get yours now you can visit https://reversemortgagefinancesolutions.com.au. If you exclude any relative or spouse who is younger then you can get a larger amount of loan for it.

Cons

Though it is true that you get more amount by excluding young relatives, however, once the borrower passes away they would have to move out immediately. Also, the reverse mortgage is only for people who are above the age of 62.

You need to pay back the amount with a compound interest rate that increases with time. However, there are provisions in which you have to pay at a fixed interest rate. Also, if you have any heirs or have to distribute your property then a reverse mortgage may not be a wise choice for you as your home is taken as collateral and you have to sell it to pay back the amount.

Benefits of Owning a Debit Card

Benefits of Owning a Debit Card

Paying for your daily shopping with a debit card can be fun, and it also comes with a lot of benefits. A debit card frees you of the worry of taking enough cash with you, and you won’t have to carry around your checkbook and a pen to pay anyone.

A credit card can provide you with many benefits just for spending more on a monthly basis and maintaining a hood credit score, but debit cards are a different thing altogether. Here are some of the benefits of owning a debit card.

No Fees

Credit cards come with their high interest rates, withdrawal fees and other hidden expenses, while on the other hand, if you use your debit card wisely, you can prevent every fees. This benefit is especially for those people who only want to spend what they already have in their bank account.

A low fees that you might need to avoid by using a debit card is the deduction your bank makes if you withdraw the money from an unaffiliated ATM, so, make sure you use an in-network ATM to withdraw the funds. Your debit card usually takes money from your bank account, but you can also transfer money from credit card to debit card for use.

Spend What You Have

A debit card is also known as a digital check, it cuts the money from your bank account, and you can keep track of your monthly spending at the end of each month, additionally, you won’t have any interest to pay either when you spend the money you have available in your bank account already.

Added Security

Losing a wallet means that all the hard cash you had in that wallet is gone forever, but a debit card, on the other hand, can help you in a way that it can’t be used at any ATM to withdraw the money unless the thief knows your PIN.