If you are thinking about getting a reverse mortgage, you more than like likely have a ton of questions. Is it a bad idea or a good idea to get a reverse mortgage loan? Is It Possible To lose my home? Whose home is it truly when I get a reverse mortgage? Those are probably the most common thoughts that I hear, With many choices in life, you have to decide what makes the most sense. Reverse Mortgages are not any different. Below is a variety of information about reverse mortgage for you to take into consideration.

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Benefits of Reverse Mortgages: (also called HECM – heck-uhm)
Extra cash flow guaranteed by the Government which continues provided that your home is your primary residence. You can learn more about reverse mortgage loansĀ  here.
As long as there is equity in the home, depending on your initial qualifications and growth, you could make changes to the way you access the homes equity. The remaining Credit line grows month after month at 1.25% over the current interest rate. An excellent choice for those that wish to remain in there home.
Relocating can cause psychological turmoil for a lot of senior home owners. Memories were created inside your “home sweet home”, and close proximity to loved ones and residing in your area might be a better option.
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 remain in your house regardless of what is owed on your Reverse Mortgage. You can never be forced out of your home provided that your real-estate taxes and homeowner’s insurance are paid and as long as you maintain your home.
You are able to refinance out of the reverse mortgage in to a traditional loan presuming you meet the requirements and there is equity in your home.
Neither you, your estate or your heirs can ever owe any more than the value of the home.
Your financial assets can not be attached to repay the mortgage debt, additionally, the debt will not pass to your heirs or your estate. The home stands for the debt (non-recourse loan).
Reverse Mortgages have numerous safety measures: capped mortgage rates, a limitation on fees, HUD counseling, asset protection (non-recourse loan), no maturation date (cannot become due during a homeowner’s life-time).
Beneficiaries can get a tax break after the home is sold and the interest is all paid at once.
Your heirs might be able to claim the interest from your mortgage on their own income taxes after your passing. (Be sure to speak to your income tax advisor for recommendations.)

Those were the pros, the good things. 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:
A Reverse Mortgage features all of the common closing costs one finds with a normal mortgage loan. However, they can be more costly. There is FHA mortgage insurance and additional closing costs, but those expenses are standard of any FHA mortgage.
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 complete opposite of a conventional mortgage loan where equity increases as mortgage payments are made.
Selling your home will produce a larger 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 don’t pay your taxes or insurance the lender may foreclose on your home.
The bank can also begin the foreclosure process if you haven’t resided in the home for 12 straight months.
Medicaid could be affected, and you may not qualify for benefits unless you spend down your Reverse Mortgage proceeds every month. (Check with your attorney and Medicaid for info.)

When NOT to get yourself a Reverse Mortgage:
For those who only need short term access to cash and equity.
{In the event your main objective is repairing your house, a community gift may work better.|In the event you only need to add a roof, windows or other energy efficient options. If that is the case, funds and assistance might be available. Go here for more reverse mortgage information.
For anyone who is ill and assisted living or a elderly care facility is coming up, don’t choose a Reverse Mortgage.
When family and friends suggest that a senior reverse mortgage isn’t really a good option, consider their suggestions and keep an open mind; they may have your best interests in mind.
Should you have other options such as moving in with friends and family or the capacity to pay for senior living facilities.
If you use the property for farming.