If you are thinking about getting a reverse mortgage, you more than like likely have a ton of questions. Is it smart to sign up for a reverse mortgage? Can my property get foreclosed on with a reverse mortgage? Whose property is it really once I get a reverse mortgage? Those are some of the most typical concerns that I hear, There are all kinds of good and bad points in every decision. In terms of obtaining a reverse mortgage, some serious thinking and decisions will need to be made. Below is a variety of information about reverse mortgage that you can take into account.

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Benefits of Reverse Mortgages: (also called HECM – heck-uhm)
Increase your monthly cash flow for life or for a specified term. You can learn more about reverse mortgagesĀ  here.
Provided that there is equity in the home, based on your initial qualifications and growth, you can make changes to the way you access the homes equity. Line of credit increases monthly at 1.25% over the current rate. A great choice for baby boomers who would like to remain in familiar surroundings and in the same area where they have lived for years.
Moving might cause mental turmoil for a lot of elderly home owners. Memories were made within your “home sweet home”, and close proximity to loved ones and remaining in your community might be a better choice.
Get rid of your monthly mortgage payment and pay off those stubborn credit cards and other debt. Normally, the only out of pocket costs you will have are the HUD counseling fee and the appraisal. But additional fees may apply depending on the situation and type of property.
You can remain in your house irrespective of what is owed on your Reverse Mortgage. You can’t ever be forced out of your home as long as your real estate taxes and homeowner’s insurance are paid and as long as you maintain your home.
You can refinance your Reverse Mortgage repeatedly so long as there is remaining equity in your home.
Neither you, your estate or your heirs can ever owe any more than the value of the home.
This is what known as a non-recourse loan. In other words, you have no personal responsibility for this loan, neither does your estate or your heirs.
Reverse Mortgages have several safety measures: capped mortgage rates, a restriction on fees, HUD counseling, asset protection (non-recourse loan), no maturation date (cannot become due within a borrower’s life-time).
Might be a financial tool to help beneficiaries avert a few of the real estate tax.
Your beneficiaries might be able to claim the interest from your mortgage on their own income taxes after your death. (Make sure you consult your income tax advisor for advice.)

Everybody likes the good stuff or the pros. Pretty easy, 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:
A Reverse Mortgage includes all of the common closing costs one finds with a standard mortgage. Nonetheless, they may be more costly. There’s FHA mortgage insurance and extra closing costs, but those expenses are normal of any FHA mortgage.
If all you are leaving for an inheritance is your home, there may or may not be equity for you to leave behind. A Reverse Mortgage is a growing debt loan since you’re not making mortgage payments. It’s the complete opposite of a standard mortgage where equity will increase as mortgage payments are made.
Selling your property will provide a higher bang for your buck than a Reverse Mortgage.
These refinancing options definitely 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 can’t maintain your home, the bank might call for repayment of the debt. (Lenders, however, will certainly work with you to cure the default.)
The bank can also begin the foreclosure process if you haven’t lived in the home for 12 straight months.
Medicaid may be affected, and you may not qualify for benefits unless you spend down your Reverse Mortgage proceeds each month. (Seek advice from your attorney and Medicaid for info.)

When NOT to get a Reverse Mortgage:
An equity loan may be a more affordable way to get cash out of the home.
{If your main intention is upgrading your house, a community grant may work better.|If you just need to add a roof, windows or other energy efficient options. If that is the case, grants and assistance may be available. Go here for more reverse mortgage information.
Once you know you are going to be moving into an assisted living facility in the very near future.
If your family says you shouldn’t get a reverse mortgage, listen to them and have a meaningful discussion with them and the loan officer, together.
If your kids invite you to move in with them, this may be a wonderful solution to staying in your own house.
A homeowner whose residence utilizes in excess of 25% of the overall liveable space for their home business is not going to qualify for an FHA Reverse Mortgage.