Pros:
If you are living on social security alone, the money from a reverse mortgage can help supplement your SS.
It’s tax free cash and government insured.
You can draw this cash for as long as you live in your home.
Cons:
If you find you can no longer pay your house insurance of your real estate taxes, the lender has a right to foreclose on your home.
Once you die or leave your home, the home reverts to the lender, which means your heirs will not inherit the family home.
Another word of caution is, if you are a married couple, be sure both are on the mortgage. Under current HUD policy, spouses left in the home when the owner dies or goes into assisted care, the remaining spouse can be forced to leave the home.
Interest rates are high and take a bite of your equity.
For more information, go to www.hud.gov and enter “reverse mortgage.”