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? Can the federal government take my property? Who’s going to be on title, me, the lender, the us government or all of us? Those are wonderful questions that all have answers. There are a myriad of advantages and drawbacks in every decision. Reverse Mortgages are not any different. So here are some things that may help you if you want info on Reverse Mortgages:

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Benefits of Reverse Mortgages: (also called HECM – heck-uhm)
Improve your monthly cash flow for as long as you live in the home. You can learn more about the reverse mortgage home loan optionsĀ  here.
You are not stuck with the decision you initially make. You can make modifications to the way you receive funds from your home at any time, assuming equity remains. One of the really cool features in regards to 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 remain in their home and be able to pay for care for themselves and the property.
Relocating may cause emotional hardship for many older homeowners. Memories were created in your “home sweet home”, and close proximity to loved ones and remaining in your town can be a good choice.
Reverse Mortgages can satisfy your current mortgage or debts, even though your financial obligations are moved to your Reverse Mortgage balance. (Your house 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 can not be evicted from your home as long as you are abiding by the agreement in the contract. Mainly these agreements include maintaining your home and paying your taxes, insurance and HOA dues.
You can refinance your Reverse Mortgage again and again as 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.
Your assets can not be attached to pay off the mortgage debt, additionally, the debt will not pass to your heirs or your estate. The home represents the debt (non-recourse loan).
Reverse Mortgages have numerous safe practices: capped interest rates, a restriction on fees, HUD counseling, asset protection (non-recourse loan), no maturity date (cannot become due within a borrower’s lifetime).
Could be a financial tool to help beneficiaries avoid some of the real estate tax.
Your beneficiaries could possibly claim the interest from your mortgage on their own income taxes after your passing away. (Make sure you consult your tax advisor for recommendations.)

Those were the pros, the good things. 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 Disadvantages of Reverse Mortgages:
A Reverse Mortgage features all of the common settlement costs one finds with a normal home loan. Nevertheless, they could be more costly. There is FHA mortgage insurance and additional settlement costs, but those costs are typical of any FHA mortgage.
You may not leave much if anything for your heirs with a reverse mortgage. Since 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’s the complete opposite of a typical home loan where equity increases as mortgage payments are paid.
Selling your home can often provide a larger return on your investment than a Reverse Mortgage.
Moving out of your residence in under five-years makes a Reverse Mortgage unwise. It does not make good sense to use a Reverse Mortgage short term.
If you don’t 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 resided in the home for 12 consecutive months.
Medicaid could be affected, and you may not qualify for benefits unless of course you spend down your Reverse Mortgage proceeds each month. (Seek advice from your attorney and Medicaid for info.)

When NOT to obtain a Reverse Mortgage:
An equity loan might be a more affordable way to get cash out of your property.
{In the event your primary intention is improving your home, 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, grants and assistance might be available. Go here for more reverse mortgage information.
If you know you’re going to be moving to an assisted living facility in the very near future.
If family members believe that a senior reverse mortgage isn’t really a good option, give some thought to their recommendations and preserve a balanced view; they’ve got your best interests at heart.
For those who have other options such as moving in with family and friends or the capability to pay for senior living facilities.
A homeowner whose residence uses at least 25% of the overall livable space for their home business isn’t going to qualify for an FHA Reverse Mortgage.