Reverse Mortgage

Are you eligible for a Reverse Mortgage?  If so what are the repercussions, cost and benefits? You are being told that if you are at least 62 years old and own your home you probably are eligible for a reverse mortgage. Lenders today are more than willing to provide you with a free consultation.  They are willing to tell you if you are eligible – how much you qualify for and what the loan terms will be.  You are also told that a reverse mortgage can be considerably cheaper than selling or moving to a new home.  You may even be told that the interest rates are usually lower than they are on a traditional mortgage.

You’ll probably get even more excited when they tell you that you can receive a lump sum, monthly payments, or a line of credit; that you never need to repay as long as you live in the home.  But wait, is a reverse mortgage a good idea – is it good for you?  Why pay someone money to help you find a reverse mortgage when you can continue to pay as you have been paying?  In my opinion, reverse mortgages are a bad idea and should be sought only as a last resort.

If you are being hassle into taking out one of these loans so that you can obtain a deferred annuity,  then perhaps you should not be talking to these individuals, no matter what their reputation is.  Deferring your annuity could be a bad idea because it could restrict your access to any retirement savings, now and in future years. Whether you are a single woman or a married couple with financial concerns it is advisable that you do the research and analyze carefully all pros and cons before making a decision about your mortgage. A rash decision involving your money, perhaps involving hundreds of thousands of dollars could result in you losing your home.  If you do decide to go down this road, thread carefully.  Remember, the economy is still in the toilets and there are people who will take advantage.