You are here: Home Finances Reverse Mortgages ... What Are Some Of The ...
Information about all aspects of finances affected by a serious health condition. Includes income sources such as work, investments, and private and government disability programs, and expenses such as medical bills, and how to deal with financial problems.
Information about all aspects of health care from choosing a doctor and treatment, staying safe in a hospital, to end of life care. Includes how to obtain, choose and maximize health insurance policies.
Answers to your practical questions such as how to travel safely despite your health condition, how to avoid getting infected by a pet, and what to say or not say to an insurance company.

Reverse Mortgages 101

What Are Some Of The Pitfalls To Watch Out For When Considering A Reverse Mortgage?

Next » « Previous


There are many potential downsides to using a Reverse Mortgage to be considered before signing on the dotted line:

  • Your home is likely to be valued conservatively. The mortgage could be based on less than what your home is really worth.
  • You will still be responsible to pay property taxes, homeowners insurance, and keep up the house. 
    • If you do not keep up with the payments, there could be a foreclosure on the house.
    • NOTE: You can set aside part of the proceeds to pay the taxes, insurance premiums and maintenance
  • You can lose out on the home's appreciation if the lender eventually takes title to it.
  • As the equity in your home decreases, there is less money available for emergency purposes.
  • If you obtain a Reverse Mortgage and then change your mind, it may be difficult to repay the loan because the amount of the debt increases quickly. Interest compounds upon interest during the life of the loan.
  • You may use up all of your equity and have nothing left for later years.
  • The high cost of obtaining a Reverse mortgage. See the next section.

NOTE: If your spouse/partner is not named on the mortgage, he or she could lose the house upon your death. Both spouses should be named on the mortgage.

Please share how this information is useful to you. 0 Comments


Post a Comment Have something to add to this topic? Contact Us.

Characters remaining:

  • Allowed markup: <a> <i> <b> <em> <u> <s> <strong> <code> <pre> <p>
    All other tags will be stripped.