The Pros and Cons

When making an important life decision, it’s helpful to define the pros and cons, weigh both, and make the best decision that you can. In our opinion, here are the pros and cons of taking out a reverse mortgage.

Pros

  1. You get to stay in your home provided you keep up with taxes and insurance
  2. It is relatively easy to qualify
  3. You do not need to make monthly payments
  4. There are many options for receiving the funds
  5. The funds you receive are not taxable
  6. Depending on how you plan to use it, a reverse mortgage can be less expensive than refinancing or taking out a home equity loan

Cons:

  1. Up front costs are relatively high
  2. Depending on how you plan to use it, a reverse mortgage can be more expensive than refinancing or taking out a home equity loan
  3. Can affect Medicaid and other government assistance
  4. Can reduce the inheritance you will leave to your heirs