If you are thinking about getting a reverse mortgage, you more than like likely have a ton of questions. Should I or shouldn’t I get a reverse mortgage? “Am I Going To lose my home? “Now the lender is going to be on the title of my property, not me, correct?” Those are some of the most common thoughts that I hear, Other areas of life have advantages and disadvantages. Making a decision about a reverse mortgage is no different. So here are a few things that may help you if you want facts about Reverse Mortgages:

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The PROS 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 the reverse mortgage home loan optionsĀ  here.
As long as there is equity in your house, based on your initial qualifications and growth, you can make changes to the way you access the homes equity. One of many fantastic features concerning the line of credit it that the unused portion of the credit line grows at the current rate plus 1.25%. This is a way for many senior citizens to be able to remain in their home and be able to pay for care for themselves and the property.
Relocating might cause emotional problems for a lot of elderly home owners. Memories were created within your “home sweet home”, and close proximity to loved ones and residing in your community could be a more sensible choice.
Get rid of your monthly mortgage payment and pay off those stubborn credit cards and other debt. Almost all of the closing costs can be lumped into the loan with the exception of the counseling fee and appraisal.
You can live in your house no matter what is owed on your Reverse Mortgage. You’re never going to 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 are able to refinance your Reverse Mortgage over and over again so long as there is remaining equity in your home.
You can never owe any more than the property is valued at.
Your assets cannot be attached to pay off the mortgage debt, and the debt does not pass to your heirs or your estate. The home represents the debt (non-recourse loan).
Reverse Mortgages have numerous safeguards: capped mortgage rates, a restriction on fees, HUD counseling, asset protection (non-recourse loan), no maturity date (cannot become due within a homeowner’s lifetime).
Heirs can get a tax break once the house is sold and the interest is all paid at once.
Your heirs may be able to claim the interest from your mortgage on their income taxes after your death. (Be sure to consult your tax advisor for help.)

Everybody likes the good stuff or the pros. Super simple, no? 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 standard settlement costs one finds with a regular mortgage loan. Nonetheless, they could be more costly. There’s FHA mortgage insurance and extra settlement costs, yet those charges are standard of any FHA mortgage.
In the event that all you are leaving for an inheritance is your home, there may or may not be equity for you to leave behind. Because 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 opposite of a standard mortgage loan where equity increases as mortgage payments are made.
You’ll typically net more cash from the sale of your home than you will with a reverse mortgage.
These financing options really don’t seem sensible if you are intending on moving in the future.
If you don’t pay your real estate taxes or homeowner’s insurance or can’t maintain the home, the bank may require repayment of the debt. (Lenders, however, will work with you to cure the default.)
The lender can also begin the foreclosure process if you have not resided in the home for 12 consecutive months.
You won’t be eligible for needs based programs and assistance such as Medicaid.

When NOT to get a Reverse Mortgage:
An equity loan could be a much less expensive way of getting cash out of your house.
{If your major intention is fixing up your house, a community gift may work far better.|For those who just need to add a roof, windows or other energy efficient options. If that is the case, funds and assistance might possibly be available. Go here for more reverse mortgage information.
In case you are ill and assisted living or a an elderly care facility is imminent, do not choose a Reverse Mortgage.
When family members believe that a senior reverse mortgage is not a great option, give some thought to their suggestions and preserve a balanced view; they may have your best interests in mind.
If your children invite you to move in with them, this may be the optimal solution to residing in your own home.
If you are using the home or property for agriculture.