Top 8 things to ask yourself before you get a Reverse Mortgage?

If I become incapacitated, is my home rehab friendly? a. Does my home have stairs? Is there a bedroom and bathroom downstairs? Many people are living longer than their knees and hips are lasting. Stairs that are easily scaled when healthy can prove a challenge for someone who has had recent surgery. Does my home need or will it need any repairs of maintenance? a. Ask your self is my home in good condition? Will I need a new roof, furnace, flooring or plumbing repairs? What about appliances? Many appliances need to be replaced every ten years or so. Will you have the funds for these items? Asking yourself these questions can be helpful in making the decision of how you take your reverse mortgage proceeds. A reverse mortgage balance increases over time as your equity decreases. There are many details to a reverse mortgage contract. Two excellent resources for reverse mortgage details is AARP's publication "Home Made Money" and "The Reverse Mortgage Book for Dummies". 8. Is it the right time for a reverse mortgage? a. It is not only important that you know you are in the home you want to live in for a long time if not the rest of your life, but it is also important to know is it the right time for a reverse mortgage? As you age, you qualify for more proceeds, however currently we are in a down cycle in housing values. Do I want it to eliminate my house payment? Do I have unwanted debt or medical bills I need to pay? Would I benefit from more cash each month? Do I plan to stay in my home for the long term? A reverse mortgage typically should not be used as a short term loan. It's been said a reverse mortgage should be your last mortgage. Refinancing to attain more money is possible with home appreciation and age, however as we well know economic projection is not always reliable. Making prudent financial decisions can only benefit you.