I meet with baby boomers that own a house and are seriously considering getting a reverse mortgage or at the very least, are curious about them. Is it smart to sign up for a reverse mortgage? “Am I Going To lose my property? Who is on title, me, the lender, the government or perhaps all of us? Those are all very serious and really good questions. Other parts of life have advantages and disadvantages. Making a decision about a reverse mortgage is no different. Needless to say you need to educate yourself about the options you have along with the pros and cons of a reverse.

See these other pages: Del Paso Heights, Walerga, North Highlands, Robla

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 the options available with a reverse mortgageĀ  here.
It is possible to change your plan at any time from the line of credit, cash out, monthly checks, or a combo (depending on what remains). 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%. An excellent choice for those that wish to stay in there home.
Moving can cause psychological chaos for many senior homeowners. Memories were made in your “home sweet home”, and close proximity to loved ones and remaining in your community can be a better option.
Reverse Mortgages can satisfy your current mortgage loan or debts, though your debts are transferred to your Reverse Mortgage balance. (Your house does not have to be free and clear to qualify.) Generally, the only out of pocket costs you will have are the HUD counseling fee and the appraisal. But additional fees may apply based on 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 are able to refinance your Reverse Mortgage over and over again as long as there is remaining equity in your home.
You can’t ever owe any more than the property is valued at.
This is what is known as a non-recourse loan. To put it differently, you have no personal responsibility for this loan, neither does your estate or your heirs.
There are several nice options with this mortgage such as the mortgage loan fees being limited and interest rates are capped.
Could be a financial tool to help heirs avoid a few of the real estate tax.
Your heirs might be able to claim the interest from your mortgage on their income taxes after your passing away. (Make sure to consult your tax advisor for advice.)

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:
They can and often are higher in price than a traditional loan. However, you can’t really compare them as they are very different loan products.
If whatever you are leaving for an inheritance is your home, there may or may not be equity for you to leave behind. A Reverse Mortgage really is a growing debt loan since you are not making mortgage payments. It’s the opposite of a typical home loan where equity increases as mortgage payments are paid.
You will typically net more cash from the sale of your house than you will with a reverse mortgage.
Moving from your home in under five-years tends to make a Reverse Mortgage risky. It doesn’t make good sense to use a Reverse Mortgage short term.
If you do not pay your taxes or insurance the lender may foreclose on your home.
If you aren’t living in your main home for a period exceeding beyond Twelve continuous months, the Reverse Mortgage is set to become due. (Nursing homes, assisted living, moving, etc.)
You won’t qualify for needs based programs and help such as Medicaid.

When NOT to get yourself a Reverse Mortgage:
An equity loan are often less costly way to get cash out of the home.
{When your main intention is repairing your house, a community grant may work far 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 possibly be available. Go here for more reverse mortgage home loan information.
If you know you are going to be moving into an assisted living facility in the very near future.
When family and friends suggest that a senior reverse mortgage is not a wise decision, give some thought to their recommendations and keep an open mind; they have your best interests at heart.
If your kids ask you to move in with them, this can be the optimal alternative to remaining in your own house.
If you use the house for farming.