If you are thinking about getting a reverse mortgage, you more than like likely have a ton of questions. Will it be an awful idea or a wise course of action to get a reverse mortgage loan? Is It Possible To lose my home? Who’s on title to the property when you get a reverse mortgage? Those are fantastic questions that all have answers. There are all sorts of good and bad points in every decision. This is also true with a reverse mortgage loan. Below is a variety of information about reverse mortgage that you can consider.

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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 your home, based on your initial qualifications and growth, you could make changes to the way you access the homes equity. One of the fantastic features about 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 seniors to be able to stay in their home and be able to afford to pay for care for themselves and the property.
Moving may cause mental hardship for a lot of elderly home owners. Memories were created inside your “home sweet home”, and close proximity to loved ones and remaining in your area might be a more sensible choice.
You do not have to own you home free and clear to qualify for a reverse mortgage. Almost all of the closing costs can be lumped into the loan with the exception of the counseling fee and appraisal.
You can remain in your home 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 can only refinance into an additional reverse mortgage if you’re getting a 5 to 1 ratio. To meet the requirements you need to gain access to $5 of equity for every $1 of cost for the new loan.
Upon the sale of your home you will never owe more than the house is worth.
This is what is referred to as a non-recourse loan. Put simply, you have no personal responsibility for this loan, neither does your estate or your heirs.
There are lots of really cool features with this home loan like the mortgage loan fees are limited and interest rates are capped.
Might be a financial tool to help beneficiaries avoid a few of the real estate tax.
Your beneficiaries may be able to claim the interest from your mortgage on their income taxes after your passing away. (Be sure to speak to your tax advisor for recommendations.)

Those were the pros, the good things. Easy stuff right? Of course the loan officer starts off with the good stuff. Here are the cons:

The Negatives of Reverse Mortgages:
They can and quite often are higher priced than a conventional mortgage loan. However, you should not really compare them as they are different loan products.
You might 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 paid.
Selling your house can often provide a greater return on your investment than a Reverse Mortgage.
These refinancing options definitely don’t seem sensible if you are intending on moving in the future.
If you don’t pay your taxes or insurance the lender may foreclose on your house.
The mortgage company can also begin the foreclosure process if you have not lived in the home for Twelve consecutive months.
You may not be eligible for needs based programs and support such as Medicaid.

When NOT to get a Reverse Mortgage:
If you only need short term access to cash and equity.
{If your main objective is improving your home, a community loan may work better.|For those who only need to add a roof, windows or other energy efficient options. If that is the case, grants and assistance might possibly be available. Go here for more reverse mortgage information.
Should you be ill and assisted living or a an elderly care facility is approaching, you should not choose a Reverse Mortgage.
When family and friends suggest that a senior reverse mortgage is not a good option, start thinking about their recommendations and preserve an objective balance; they have your best interests in mind.
If you have other options such as moving in with friends and family or the ability to pay for senior living facilities.
A homeowner whose residence utilizes more than 25% of the overall living space for their company will not qualify for an FHA Reverse Mortgage.