I meet with baby boomers that own a home and are very seriously considering getting a reverse mortgage or at the very least, are curious about them. Would it be a good idea to sign up for a reverse mortgage? “Am I Going To lose my property? Whose property is it really when I get a reverse mortgage? Those are probably the most common questions that I hear, Other areas of life have positives and negatives. When it comes to getting a reverse mortgage, some critical thinking and decisions will need to be made. In order to aid you in your fact gathering quest I have included a bunch of information for you.

See these other pages: Mikon, Bryte Mobile Home Park, Westwind Estates, Lovdal

The PROS of Reverse Mortgages: (also called HECM – heck-uhm)
Extra cash flow guaranteed by the Government which continues so long as your home is your primary residence. You can learn more about reverse mortgage loansĀ  here.
You aren’t bound to the decision you initially make. You could make changes to the way you receive funds from your home at any time, assuming equity remains. The remaining Credit line grows larger on a monthly basis at 1.25% over the current interest rate. This is a way for many seniors to be able to remain in their home and be able to afford care for themselves and the property.
Relocating might cause emotional chaos for many elderly homeowners. Memories were made inside your “home sweet home”, and close proximity to loved ones and residing in your town might be a more sensible choice.
Reverse Mortgages can satisfy your existing mortgage or debts, though your debts are transferred to your Reverse Mortgage balance. (Your home doesn’t have to be free and clear to qualify.) Almost all of the closing costs can be lumped into the loan with the exception of the counseling fee and appraisal.
You’ll be able to remain in your home no matter what is owed on your Reverse Mortgage. You’re never going to be forced out of your home so 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 again and again as 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, additionally, the debt does not pass to your heirs or your estate. The home stands for the debt (non-recourse loan).
There are numerous awesome options with this home loan such as the fees being limited and interest rates are capped.
Beneficiaries could get a tax break after the home is sold and the interest is all paid at once.
Your beneficiaries may be able to claim the interest from your mortgage on their own income taxes after your death. (Be sure to speak to your income tax advisor for recommendations.)

Now, those are 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 Disadvantages of Reverse Mortgages:
They can and often are higher in price than a traditional mortgage loan. However, you can not really compare them as they are very different loan products.
You may not leave much if anything for your heirs with a reverse mortgage. 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 typical mortgage loan where equity will increase as mortgage payments are made.
You will typically net more cash from the sale of your home than you will with a reverse mortgage.
These refinancing options really do not make sense if you are intending on moving in the future.
If you do not pay your taxes or insurance the lender may foreclose on your home.
The lending company can also begin the foreclosure process if you haven’t lived in the home for Twelve consecutive months.
You may not be eligible for needs based programs and help such as Medicaid.

When NOT to get a Reverse Mortgage:
An equity loan can be a less costly way to get cash out of your property.
{When your major intention is upgrading your home, a community gift may work much better.|In the event you simply 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.
If you know you’re 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 you have other options such as moving in with relatives and buddies or the ability to spend money on senior living facilities.
If you use the home for agriculture.