Reverse mortgages are a good planning tool under certain situations but know the facts before committing.
- Minimum eligible age is 62 and the amount you can borrow is based on your age, interest rate, and the value of your home.
- The fees and cost to obtain a reverse mortgage are often substantial and more than you would pay with a conventional mortgage.
- You need to continue to maintain your home. Repayment of the loan is not made as long as you stay in your home, but you are still required to pay property taxes, insurance, repairs and other needed costs to maintain the home fair market value.
- Know what will happen if the borrower should die or move.
- Is the reverse mortgage your only option. Do not be instructed that this is the best or only solution for you – know all your options.