If you are thinking about getting a reverse mortgage, you more than like likely have a ton of questions. Would it be smart to take out a reverse mortgage? “Can I lose my property? Who is on title, me, the lender, the government or all of us? Those are among the most typical questions that I hear, Many things in life have positives and negatives. Reverse Mortgages are no different. Below is a variety of information about reverse mortgage that you should take into account.

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Benefits of Reverse Mortgages: (also called HECM – heck-uhm)
Increase your monthly cash flow for as long as you live in the home. You can learn more about reverse loansĀ  here.
As long as there is equity in the house, based on your initial qualifications and growth, you could make changes to the way you access the homes equity. The remaining Line of credit grows monthly at 1.25% over the current rate. A great choice for those that wish to stay in there home.
Relocating can cause mental turmoil for a lot of elderly homeowners. Memories were made within your “home sweet home”, and close proximity to loved ones and residing in your community can be a better option.
Get rid of your monthly mortgage payment and pay off those stubborn credit cards and other debt. There isn’t any out of pocket expenses other than the appraisal fee and HUD counseling. Some HUD counseling organizations may waive the charge.
You can not be evicted from your home as long as you are abiding by the agreement in the contract. Mainly these agreements include maintaining your home and paying your taxes, insurance and HOA dues.
You can only refinance into another reverse mortgage if you’re getting a 5 to 1 ratio. To meet the requirements you will need to get access to $5 of equity for every $1 of cost for the new loan.
Upon the sale of your property you won’t ever owe more than the house is worth.
Your assets cannot be attached to pay back the mortgage debt, and the debt will not pass to your heirs or your estate. The house stands for the debt (non-recourse loan).
There are lots of awesome options with this loan like the mortgage loan fees being limited and interest rates are capped.
Can be a financial tool to help beneficiaries avert a portion of the real estate tax.
Your beneficiaries might be able to claim the interest from your mortgage on their own income taxes after your passing away. (Make sure you consult your income tax advisor for recommendations.)

Everybody likes the good stuff or the pros. Easy stuff right? Sure, the dutiful old loan officer always gives you the good parts, but there are some things that may be drawbacks to Reverse Mortgages. Here are the cons:

The CONS of Reverse Mortgages:
They can and often are higher in price than a conventional mortgage loan. However, you should not really compare them as they are different loan products.
A Reverse Mortgage can cut your children’s and grandchildren’s inheritance. Since you do not make payments with a reverse mortgage, you loan balance grows over time. As you loan balance grows it slowly eats up your equity. It is the complete opposite of a standard home loan where equity increases as mortgage payments are made.
You’ll typically net more cash from the sale of your house than you will with a reverse mortgage.
These financing options really don’t make sense if you are planning on moving in the future.
If you’re unable to pay your real estate taxes or homeowner’s insurance or fail to maintain your home, the mortgage company might call for repayment of the debt. (Loan providers, however, will certainly work with you to cure the default.)
If you aren’t living in your main home for a period in excess of Twelve continuous months, the Reverse Mortgage will end up due. (Assisted living facilities, assisted living, moving, etc.)
Medicaid might be affected, and you may not be entitled to benefits unless of course you spend down your Reverse Mortgage proceeds monthly. (Seek advice from your attorney and Medicaid for info.)

When NOT to get yourself a Reverse Mortgage:
For those who just need short term access to cash and capital.
{If your primary goal is repairing your home, a community loan may work better.|If you simply need to add a roof, windows or other energy efficient options. If that is the case, subsidies and assistance may be available. Go here for more reverse mortgage information.
Should you be ill and assisted living or a elderly care facility is coming up, do not choose a Reverse Mortgage.
If family and friends suggest that a senior reverse mortgage isn’t really a wise decision, consider their suggestions and keep an open mind; they have your best needs at heart.
If your kids encourage you to move in with them, this can be a wonderful solution to residing in your own property.
If you are using the home or property for farming.