How do you know if a reverse mortgage is right foryou? The answer depends on your current financialsituation of course.
But other factors such as your medical condition andlifestyle are important in determining whether or nota reverse mortgage is your best choice compared to ahome equity loan, a line of credit, or just sellingyour home.
A reverse mortgage might be worth your considerationin many situations. Some of the common reasons youmight 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 isyou major asset
You want to stay in your home and have nointention of leaving it
Other housing options are unaffordableor not appealing to you
You want to be able to take care ofmajor medical expense
You want to be able to do home repairs, travel, or help your children
You don't plan on leaving yourhome to your heirs through inheritance
You want to relax byknowing that your financial needs are taken care of
A reverse mortgage is not for everyone. You may want to avoid areverse mortgage if you answer "no" to any of the followingquestions:
Will you be able to enjoy the money from a reversemortgage knowing that the debt on your home is risingand 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 ofyour 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 thedisadvantages 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 yourreverse mortgage and the costs involved in obtaining areverse mortgage loan?
As you can see, there are a number of factors to consider andquestions to ask before you can determine whether or not areverse mortgage is right for you.