• Reverse Mortgage Home
• Questions You Should Think About
• Reverse Mortgage Myths
• The Reverse Mortgage Purchase
• What’s Different for Reverse Mortgages?
• How Does a Reverse Mortgage Work?
• Reverse Mortgage Ins and Outs
• Top 10 Questions To Ask
• Are Reverse Mortgages Safe?
• Calculating a Reverse Mortgage
• Pros and Cons of Reverse Mortgages
• HECM vs Other Products
• HELOC vs HECM Comparision
• Reverse Mortgage Leads
• Contact Us
• About Us



• HECM
• Questions About Reverse Mortgages
• reverse mortgage
• Reverse Mortgage Comments
• reverse mortgage information
• Reverse Mortgage News
• Reverse Mortgage Opinion
• reverse mortgages
• Senior Income



• August 2010
• June 2010
• May 2010
• April 2010
• March 2010
• February 2010
• January 2010
• December 2009
• November 2009
• July 2009
• June 2009

Questions You Should Think About

As reverse mortgages become more and more popular, the AARP has come up with a few questions that seniors should ask themselves prior to jumping into a reverse mortgage.  In addition to answering these questions, government regulations have put measures in place to make sure that a reverse mortgage is the right product, and it is understood by the potential senior borrower.  One such measure is that of a reverse mortgage counselor, which anyone applying for a reverse mortgage has to pay a visit to prior to closing the loan.

1.     Do you really need a Reverse Mortgage?   Most of us can get carried away when it comes to money.   So much so, that we can loose sight of the actual cost of it.  If you are making renovations to your home, trying to supplement your income, or even taking a dream vacation around the world: A reverse mortgage may be a good option to look at.  However, if you plan on taking the proceeds and investing them, you might think twice.  A reverse mortgage can be costly to execute and the chances to make those costs back through interests or appreciation may be limited. 

2.     Can you afford a Reverse Mortgage? While a reverse mortgage is a great way to add supplemental income, executing one at soon as you turn 62, may not be the best option.  Between high closing costs, and a product that takes into account the potential life span of a borrower, a reverse mortgage may not pay the dividends one would expect.  Keep in mind that $100,000 spread out over 30 years, is going to be much less than if it were spread out over 15 years.  It may be that at 62, a homeowner may have to go back to work prior to executing a reverse mortgage.

3.     Is now the right time for a Reverse Mortgage? Due to the high cost of closing a reverse mortgage, a homeowner considering a reverse mortgage needs to have a solid plan regarding how long they plan on staying in their home.  If a homeowner is planning on moving in a few years, a reverse mortgage would end up being extremely costly.    It may be better to look for other alternatives until the home is sold.

4.     Are there other alternatives besides a reverse mortgage?  A whole live insurance policy may offer a better solution rather than pulling the equity out of the home.  Some states also offer government assistance to help senior homeowners in need of cash flow.

5.     Do you understand what a Reverse Mortgage is?  Reverse mortgages are pretty simple once you grasp the concept of them.  However, like many mortgages, each one has different components than can have an adverse affect if the borrower does not understand the nuance of the specific loan.