You may think that getting a reverse mortgage on your home when you retire is a great idea, and it is, but there are some downfalls to this program as well. There are several reverse mortgage pros and cons to consider before taking that step. Some of the positives are that you can receive a large sum of cash from the equity of your home. You also do not have any monthly payments or a requirement to pay it back until you sell the home or pass away. The downside of a reverse mortgage is that if you decide to take out 100% of the equity, it will leave your heirs without an inheritance from the sale of your home. If leaving a financial legacy to your children or grandchildren is important to you, you should consider either declining on the reverse mortgage, or taking out a smaller amount.
The Pros and Cons of a Reverse Mortgage
February 21st, 2009 | Reverse Mortgage
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