If you are thinking about getting a reverse mortgage, you more than like likely have a ton of questions. Would it be a good idea to sign up for a reverse mortgage? “Can I lose my home? Whose property is it really when I get a reverse mortgage? These are respectable thoughts. There are a myriad of good and bad points in every decision. With regards to obtaining a reverse mortgage, some serious thinking and decisions should be made. In order to help you in your fact gathering journey I have included a huge amount of information for you.

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Benefits of Reverse Mortgages: (also called HECM – heck-uhm)
More cash flow guaranteed through the Federal Government which continues provided that your property is your primary residence. You can learn more about reverse mortgagesĀ  here.
Provided that there is equity in your home, depending on your initial qualifications and growth, you could make changes to the way you access the homes equity. One of several really cool features concerning the line of credit it that the unused part of credit line grows at the current rate plus 1.25%. A good option for seniors who want to stay in familiar surroundings and in the same neighborhood where they’ve lived for years.
Relocating can result in mental turmoil for a lot of senior homeowners. Memories were created within your “home sweet home”, and close proximity to loved ones and residing in your town may be a better choice.
Reverse Mortgages can satisfy your existing mortgage loan or financial debt, even though your debts are transferred to your Reverse Mortgage balance. (Your home doesn’t have to be free and clear to qualify.) Traditionally, the only out of pocket costs you will have are the HUD counseling fee and the appraisal. But other costs may apply depending upon the situation and type of property.
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 repeatedly so long as there is remaining equity in your home.
Upon the sale of your property you’ll never owe more than the home is worth.
Your assets may not be attached to pay off the mortgage debt, additionally, the debt will never pass to your heirs or your estate. The home stands for the debt (non-recourse loan).
There are lots of really cool features with this home loan such as the mortgage loan fees being limited and interest rates are capped.
Could be a financial tool to help beneficiaries avert some of the real estate tax.
Your beneficiaries could possibly claim the interest from your mortgage on their own income taxes after your passing. (Make sure you speak to your income tax advisor for help.)

Now, those are the pros. Easy stuff right? Now, I am sure you think that this is where I am going to stop. Fortunately for you I am going to share some of the bad things about 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 standard mortgage. However, they could be more costly. There’s FHA mortgage insurance and additional closing costs, yet those expenses are standard of any FHA mortgage.
You might not leave much if anything for your heirs with a reverse mortgage. A Reverse Mortgage really is a growing debt loan because you are not making mortgage payments. It’s the complete opposite of a standard mortgage where equity will increase as mortgage payments are paid.
Selling your property can often produce a higher bang for your buck than a Reverse Mortgage.
Moving out of your house in under five years tends to make a Reverse Mortgage unwise. It doesn’t make good sense to use a Reverse Mortgage short term.
If you don’t pay your real estate taxes or homeowner’s insurance or fail to maintain the home, the lender may require repayment of the debt. (Loan providers, however, will probably work with you to cure the default.)
The lender can also begin the foreclosure process if you have not lived in the home for 12 consecutive months.
You won’t qualify for needs based programs and support such as Medicaid.

When NOT to get a Reverse Mortgage:
If you only need temporary access to cash and equity.
{When your major intention is repairing your home, a community loan may work far better.|For those who just need to add a roof, windows or other energy efficient options. If that is the case, subsidies and assistance might possibly be available. Go here for more reverse mortgages information.
Once you know you are likely to be moving into an assisted living facility in the very near future.
If family members believe that a senior reverse mortgage is not a great choice, give some thought to their recommendations and preserve an objective balance; they may have your best needs in mind.
If your kids ask you to move in with them, this might be the optimal alternative to staying in your own property.
If you use the home or property for agriculture.