Reverse Mortgage - Good or Bad?

Mortgage and Lending with Orange County, Corona, Riverside, Los Angeles NMLS#203003

Reverse Mortgage Good or Bad?Good Vs. Bad?

I’m asked that all the time and I believe the answer is different for every circumstance.

As in many things, it’s not the tool – it’s the user.  Here are some things to consider as you mull over the suitability of a reverse mortgage for yourself, a client or loved one.

  1. Do you understand the way the reverse mortgage works? (The concept of negative amortization)

  2. Do you have a plan on how you will use the reverse?

  3. Can you articulate the benefit to you of your choice of reverse mortgage product, Fixed vs. Adjustable or Standard vs. Saver? Open-ended vs. Closed-end.

  4. Time goes by in the blink of an eye, how will your reverse mortgage be working for you in 10, 20 or 30 years?

  5. What are your plans for your home, do you want to live there till you die? What if you get sick?

  6. If your heirs want to keep the home in the family after you pass – do they have a strategy for paying off the reverse mortgage?

For some interesting and useful strategies for using a reverse mortgage to accomplish your retirement goals please check out the following posts.

Reverse Mortgages Good or Bad?  Neither. It's up to you..... but using a reverse mortgage is...

  • BAD = When they are pushed by unscrupulous lenders or greedy children as a way to make/acquire money at the expense of a seniors future lifestyle.


  • GOOD =When they are used as a financial tool to ease and structure retirement lifestyle and understood by the senior and their families with a plan.

Thank you for reading my post.  If you found this information helpful or if you have any questions please post your comments below or email me by clicking on the "Learn More" button below.

Posted by




By Deborah Nance


Your Local Southern California Reverse Mortgage Professional

How Much Do You Qualify For?

Click the Learn More Button below to email me a question.



Equal Housing Lender

iReverse Home Loans, LLC, NMLS#810502 originates reverse mortgages in Alabama, Alaska, Arizona (MB-0919584), California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon (ML-5378), Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont (1164-MB), Virginia, Washington and Wisconsin. 

Important Information: Reverse Mortgages are neither "endorsed" nor "approved" by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans. The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage loan to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, we strongly recommend that you consult with a qualified independent housing counselor, family members and other trusted advisers before making this decision. This website is not from HUD or FHA and was not approved by HUD or any government agency.


This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Lending / Financial
Seniors Issues
Southern California Real Estate Forum
The FHA Mortgage Group
communities for those 55 and better
reverse mortgages
senior loan

Spam prevention
Show All Comments
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

Good Question Deborah and great subsequent information. Keep up the good work


Jun 27, 2012 01:29 AM #1
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

You have done an excellent job of explaining the reverse mortgage; of course, every individual has to decide for themselves if this program is for them.

Jun 27, 2012 02:04 AM #2
Deborah Nance
Orange County, Corona, Riverside, Los Angeles - Corona, CA
Southern California , Reverse Mortgage Specialist

Pat - Thanks for your kind words.  I agree, each interested party should get educated and decide for themselves. And shop around!

Will- Thank you for the nice commet. I am to please. :-)

Jun 27, 2012 03:15 AM #3
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Deborah Nance

Southern California , Reverse Mortgage Specialist
How Much Will You Qualify For?
Spam prevention

Additional Information