Is a Reverse Mortgage RIGHT for me?

When is a Reverse Mortgage Right for Me?

You are committed to staying in your home, either because you don't want to leave or because other housing alternatives are unappealing or unaffordable.
You want to enhance your lifestyle and enjoy your golden years.
You want to maintain your financial independence and peace of mind.
You want a cushion for major expenses such as medical bills for a serious or long-term condition, or for major home repairs or modifications
You have a regular need for additional income to live on and your only significant asset is your home.
You want the peace of mind that comes from knowing your financial needs are taken care of.
You need to save your home from foreclosure or have other emergency needs.
You wish to buy another home and use a reverse mortgage to help finance the purchase
You need to pay for a caregiver
You want to help pay for college education for grandchildren.
You want to purchase life insurance or long term care insurance.
You want to have money for travel you have been planning.
You want to help provide financial support for family members.

Why a Reverse Mortgage can be a good Option:

Receive tax-free funds that will not compromise your
Social Security or Medicare benefits
Allows you to retain your current assets or investment portfolio undisturbed
You maintain ownership and control of your home
You have a ready source of available funds that can be adjusted to meet varying circumstances and goals.
You stay in your home for as long as you live, never making a mortgage payment with the ability to access funds from the equity in your home.

Before making a decision:

Speak with a mortgage professional about financing choices available to you. Be prepared to answer questions like how long you expect to stay in your home, what is your monthly income and expenses, what are your assets. Be able to tell your loan officer what you want to accomplish. Do you want money on a monthly basis, do you want money available if needed, or are you interested in using money all at once. Reverse Mortgages are a long term solution - if you are staying less than 2-3 years other options may be better.
Compare the benefits of each option and determine which best meets your needs. Depending on the answers to the questions, your loan professional can help you decide if a Reverse Mortgage is the right choice for you.
Include your family and or financial consultants in the decision making process.
Counseling by a HUD approved counselor is required in order to take a reverse mortgage. Take advantage of speaking with another expert who can help you make your best financing decision

Important Questions to ask:

How much money do I need? Is it possible that just paying off the mortgage will provide enough of an additional cash flow?
How much can I borrow with a Reverse Mortgage and what is the best product for me?
When does the loan have to be paid?
Will the loan become due or payable if I go to long term care or a nursing home?
What will my heirs or I have left after the loan is paid off?
Are there any early repayment penalties?
What are my obligations under the Reverse Mortgage such as property mainteneance, property taxes and insurance?
What if the loans on the house are higher than the home's value when the loan becomes due?
Does the lender take my home after I die?