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When Should You Consider a Reverse Mortgage

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  • JFoster
    2016-03-31 12:25:28 AM
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    We know this sort of decision should be taken very seriously because many factors have to be considered. A reverse mortgage can be a good thing. It can help you stay in your home, or it can cover a large loan you might need. I've heard that some use it to downsize to a smaller home. In my opinion, I think it should be considered as a last resort in most cases. Many other loans exist to where you wouldn't have to put your houses equity up. Unless you pay off the reverse mortgage, you or your heirs won't be able to keep the house. I'd like to get a broader idea of how it may benefit borrowers. What other circumstances would warrant a reverse mortgage?
  • J.K.Logic
    2016-04-01 12:31:13 PM
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    Good question. Found this helpful -

    Reverse mortgage pros and cons for homeowners

    Sounds too risky to me though, for almost every circumstance. Why put your house on the line when you are 62+, again, literally banking on the fact that you will be able to withstand the length of the mortgage vs getting into your 70s, 80, and even into your 90s.

    I guess this makes the most sense for retirees that know they won't be able to go any other route to make monthly income, but they do have a house, and only a house as their best bargaining chip. And they don't mind gambling with it.

  • JFoster
    2016-04-04 03:41:40 PM
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    Thanks! I could see where something like this would be necessary. Perhaps I'm too squeamish. Who knows where Mortgages will be in general, if I ever reach that age.
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