My last post discussed the advantages of a reverse mortgage. As with most things in life, there are also some disadvantages. Consider these 3 "ifs" before making a decision:

If you are eligible for low income assistance or will be soon, be sure that your income from the loan doesn't disqualify your from receiving Social Security, Medicare or other similar State or Federal programs.

If you are planning to move soon, your home will no longer be your primary residence. This is a requirement for a reverse mortgage. Therefore, since closing costs are typically higher than for other loans, this will most likely not be the best short-term loan.

If you are unsure about reducing your home equity, you might want to discuss this with your heirs. Many people want to leave their home to their heirs, and a reverse mortgage decreases your home equity. This, in turn, reduces the value of your estate. However, even with this loan against your home, you can still will your home to whomever you choose. They will have the choice of whether to keep the home or sell it.

Now that you hve the pros and cons, you will be able to consider this option with more clarity and understanding. Feel free to contact us with your questions. Our Reverse Mortgage Specialist can discuss your specific situation and assist you.