Some pitfalls to Reverse Mortgages.

[badmomma]

There are a few things that you really need to know before you get into one of these.

For starters the taxes,insurance and other fees come out of the mortgage holders monthly payment,ie the money you recieve.

Secondly if you are a senior and end up moving to a nursing home your house is no longer your primary residence and the bank can come for their money. This also applies to snowbirds who spend half the year elsewhere.

Lastly beware of spending too much. You may be tempted to splurge now that you have this income but if you run into an emergency later you might have used up your money from your home.

Be careful and be sure to get someone who is knowledgable to assist you in making this kind of decision. It may seem like a good one but there are conditions in which it will hurt more than help.

[flippinout]

Plus, when you die, if I am not mistaken, your property then belongs to the bank and cannot be left to your family in case that is what you had planned.

Please correct me if I am wrong in that assumption.