Reverse Mortgages: When Is One Right For You?

How do you know if a reverse mortgage is right for
you? The answer depends on your current financial
situation of course.

But other factors such as your medical condition and
lifestyle are important in determining whether or not
a reverse mortgage is your best choice compared to a
home equity loan, a line of credit, or just selling
your home.

A reverse mortgage might be worth your consideration
in many situations. Some of the common reasons you
might get a reverse mortgage loan are if:

You have a small first mortgage

You own your home free and clear with no debt

You need regular income to live on and your home is
you major asset

You want to stay in your home and have no
intention of leaving it

Other housing options are unaffordable
or not appealing to you

You want to be able to take care of
major medical expense

You want to be able to do home repairs,
travel, or help your children

You don't plan on leaving your
home to your heirs through inheritance

You want to relax by
knowing that your financial needs are taken care of

A reverse mortgage is not for everyone. You may want to avoid a
reverse mortgage if you answer "no" to any of the following
questions:

Will you be able to enjoy the money from a reverse
mortgage knowing that the debt on your home is rising
and your home equity is falling?

Can you continue to pay for property taxes, home insurance,
and any home maintenance which will still be required as part of
your loan agreement?

Can you handle financial burdens if your home equity
is partially or completely used up?

Do the advantages of owning your home outweigh the
disadvantages now and in the future?

If you do not get a reverse mortgage do you know what
your other options are?

Do you understand clearly the terms of your
reverse mortgage and the costs involved in obtaining a
reverse mortgage loan?

As you can see, there are a number of factors to consider and
questions to ask before you can determine whether or not a
reverse mortgage is right for you.