While a reverse mortgage can be an invaluable tool for some senior homeowners, there are situations where it may not be the best option. Understanding the potential downsides of a reverse mortgage can help you determine if it is an option you wish to pursue further. Below is a list things that you should consider while deciding if a reverse mortgage is the right fit for you.
The fees and insurance can be financed into the loan so you don’t have to pay them out of pocket but you will have to pay them once the loan becomes due.
A reverse mortgage may be able to help you eliminate your monthly mortgage payment,1 increase your cash flow, and live a more comfortable retirement. If you are planning on aging in place the benefits of getting a reverse mortgage may outweigh any downsides that apply to your situation. To learn how much you may qualify for and get answers to your questions fill out the calculator above or call 1.800.976.6211.
1You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.