I consult with senior homeowners daily who have tons of questions regarding the efficacy of Reverse Mortgages. ”Is this the right decision for me and my spouse?” “Can I lose my home? Who’s on title to the property once you get a reverse mortgage? Those are all very serious and very good questions. With many choices in life, you have to decide what makes the most sense. Reverse Mortgages aren’t any different. Below is a variety of information about reverse mortgage that you can think about.

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The PROS 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 reverse mortgage loansĀ  here.
Provided that there is equity in the house, depending on your initial qualifications and growth, you could make changes to the way you access the homes equity. One of many really cool features about the line of credit it that the unused portion of the credit line grows at the current rate plus 1.25%. A great choice for those that wish to remain in there home.
Moving may cause mental problems for many older homeowners. Memories were created inside your “home sweet home”, and close proximity to loved ones and remaining in your town might be a good choice.
Get rid of your monthly mortgage payment and pay off those stubborn credit cards and other debt. There isn’t any out of pocket expenses apart from the appraisal fee and HUD counseling. Some HUD counseling agencies might waive the charge.
You can live in your house irrespective of what is owed on your Reverse Mortgage. You’re never going to 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.
It is possible to refinance out of the reverse mortgage into a traditional loan assuming 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 assets cannot be attached to repay the mortgage debt, and the debt will not pass to your heirs or your estate. The home stands for the debt (non-recourse loan).
There are numerous really cool features with this loan such as the fees are limited and interest rates are capped.
Might be a financial tool to help beneficiaries avert some of the real estate tax.
Your beneficiaries may be able to claim the interest from your mortgage on their own income taxes after your passing. (Make sure to speak to your tax advisor for help.)

Everybody likes the good stuff or the pros. Pretty easy, right? Of course the loan officer starts off with the good stuff. Here are the cons:

The Negatives of Reverse Mortgages:
A Reverse Mortgage features lots of the standard settlement costs you find with a standard mortgage. However, they can be more expensive. There is FHA mortgage insurance and additional settlement costs, but those expenses are typical of any FHA mortgage.
If all you are leaving for an inheritance is your home, there may or may not be equity for you to leave behind. A Reverse Mortgage is a growing debt loan because you are not making mortgage payments. It is the opposite of a conventional mortgage where equity increases as mortgage payments are paid.
Selling your house can give you a better bang for your buck than a Reverse Mortgage.
These loans definitely don’t seem sensible if you are intending on moving in the future.
If you’re unable to pay your real estate taxes or homeowner’s insurance or neglect to maintain the home, the mortgage company may require repayment of the debt. (Loan providers, however, will certainly work with you to cure the default.)
If you aren’t residing in your primary residence for a period exceeding 12 continuous months, the Reverse Mortgage is set to become due. (Assisted living facilities, assisted living, moving, etc.)
Medicaid may be affected, and you may not qualify for benefits unless of course you spend down your Reverse Mortgage proceeds monthly. (Check with your attorney and Medicaid for info.)

When NOT to get a Reverse Mortgage:
For those who just need temporary access to cash and capital.
{If your major objective is upgrading your house, a community loan may work better.|For those who simply need to add a roof, windows or other energy efficient options. If that is the case, subsidies and assistance may be available. Go here for more reverse mortgage information.
Should you be ill and assisted living or a elderly care facility is coming up, you should not choose a Reverse Mortgage.
When family and friends believe that a senior reverse mortgage isn’t really a wise decision, take into consideration their recommendations and preserve an objective balance; they may have your best needs in mind.
Should you have other options such as moving in with family and friends or the capability to pay for senior living facilities.
A homeowner whose home makes use of in excess of 25% of the total living space for their company won’t be able to get an FHA Reverse Mortgage.