Choosing Between a Reverse Mortgage and a Structured Settlement Sale
These days, many households are looking for ways to free up money for various financial goals that require a considerable amount of cash. That includes conventional younger families, as well as older couples who are facing retirement. Reverse mortgages and structured settlement or annuity sales represent two different ways to go about collecting cash for a major purchase, to pay down debt, or for some other immediate financial goal.
The Reverse Mortgage
Many older homeowners are drawn to a reverse mortgage, and these kinds of transactions have become more popular over the last few years. The reverse mortgage involves selling equity out of a piece of real estate. In other words, rather than paying down a mortgage through monthly payments, someone who has built up equity can instead take cash out of that equity.
A reverse mortgage might be an easy and seemingly practical way to fund financial goals in the short term, but like other kinds of collateralized deals, it can end up having a negative impact on someone who may not really understand the terms of these kinds of deals. Various factors, including interest and high transaction fees, may eat up a lot of the profit for homeowners, and can leave equity dangerously low later on, when those who own the property decide to sell.
Sell Your Structured Settlement or Annuity
For anyone holding a structured settlement, annuity or other similar asset, there’s an easier way to get up front money. Unlike a reverse mortgage, a structured settlement or annuity is not tied to real estate as collateral. There’s no obligation to upkeep a property and all of the other strings that go along with real estate deals. A structured settlement or annuity is a promise to the holder that they will continue to receive structured payments; selling a structured settlement or annuity simply means the asset holder will get more of that money sooner.
Working with a Structured Settlement and Annuity Buyer
Those who are lucky enough to hold a structured settlement or annuity will need a reputable structured settlement and annuity buyer in order to effectively get a lump sum payment out of the asset. But not all structured settlement and annuity buyers are alike, and finance experts recommend talking to several firms to get the best offers on a structured settlement or annuity deal, including fees and other details.
Sell Your Structured Settlement or Annuity with CBC
At CBC, we have the right combination of experience with structured settlement and annuity transactions and care for each of our clients. We can help you to sell your structured settlement or annuity to get the most out of this kind of asset, so that you don’t have to take out additional loans or remove equity from your real estate holdings. Ask us about putting together an easy and effective structured settlement or annuity deal.
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