Reverse Mortgage Financial Future

Reverse mortgages have a place in many people's financial futures. The older one is, the better deal it is and the reason for that is simply, the older you are the shorter your life expectancy. The lender is prepared to advance you more money knowing they will get theirs after your demise. The only advantage of the appreciation will likely come for your heirs, not for you, since you have mortgaged the house and it will not be sold until your death. You should know there is nothing to prevent a reverse mortgage from being paid off simply by selling the house. In other words it's not necessary to continue to draw it down. Even after it's completely drawn down, it isn't necessary to remain in the house forever. It can be sold, the mortgage company will be paid and you will receive the residual. On balance, as long as you understand these details, a reverse mortgage may very well be in your interest. You should understand that as long as you stay in the home and pay the taxes, even though you've exhausted whatever equity could be borrowed against, you cannot be required to leave the house. You are granted life rights.

Source: The Cincinnati Post