The reverse mortgage has also been called a Home Equity Conversion Mortgage, either way the time has come for this amazing financial tool.

With the reverse mortgage, you are essentially borrowing against the free-and-clear-ownership of your home.

However the reverse mortgage isn’t just the opposite of a forward mortgage where the bank pays you instead of you paying the bank.

One advantage of the reverse mortgage is that even if the bank pays you 1 million over time and your home is only worth $250,000 you or your heirs only owe the $250,000 not the 1 million.

Even though that’s a huge advantage (the time factor), there ARE disadvantages;

Here are just a few…

Reverse mortgages are not cheap when it comes to closing costs. Even with larger up front costs the reverse mortgage can make a lot of sense but you have to get past the closing cost hurdle first and understand the deeper details which we’ll cover at this website.

If your home is considered “very expensive” you may have trouble justifying the cash you do receive every month. The reverse mortgage is designed for average home values and not something in the upper several million dollar range. Higher cost home owners would be better off having a cash account against their home under those circumstances.

In the past, and even in recent mortgage news you’ve heard of the multitude of scams causing home owners to seek foreclosure — however the reverse mortgage is not one such program.

Reverse mortgages are monitored by the U.S. Department of Housing and Urban Development, making them a solid refinancing option.

Another advantage for older home owners (age 62+) can mean the difference between staying in their home for the remainder of their lifespan or having to sell.

The chances of losing your home inside of a reverse mortgage are slim, unless you stop paying property taxes OR let the home fall apart — then the lender will step in.

This loan type makes home equity cash easily available and the longer you have the loan, the more the home will appreciate in value and outweigh any amount you’ve spent over time of course.

The reverse mortgage is a very safe option due to recent government intervention requiring counseling from knowledgeable third parties.

Overall, the reverse mortgage can be a godsend to those who understand it however they are not for everyone.

Some questions you’ll need to ask yourself first along the journey of learning more are;

Do you want a lump sum, monthly checks, a line of credit or a combination?

Which reverse mortgage lender should you choose?

How can you maintain control of the fees and costs involved?

To learn more, visit the main menu here and get your reverse mortgage questions answered in detail.