Lately there has been a lot of discussion about reverse mortgages. Basically, a reverse mortgage allows you to borrow money against your home equity. You can receive the cash all at once, monthly or as needed. In most cases, you don't have to pay the loan back until you die or sell your home. Sounds great, right? Well, there are some restrictions and potential disadvantages.
You may be eligible for a reverse mortgage if you are 62 or older and own your own home. You will be required to have a counseling session to make sure a reverse mortgage is the best option. The up front fees can be high and you pay interest.
Experts suggest looking at other options before applying for a reverse mortgage. They also suggest waiting as long as possible before getting a reverse mortgage and once you do, use the money wisely. Make sure you are going to stay in your home for several years.
This is an attractive option for seniors and baby boomers who are feeling a financial pinch.
If you are considering a reverse mortgage, do your research and talk with a reverse mortgage expert.
Did you get a reverse mortgage? Feel free to share your story.
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