The Advantages and Disadvantages of a Reverse Home Mortgage

For many individuals entering retirement, a Reverse Home Mortgage can provide benefits that positively affect their quality of life.  However, there are also numerous drawbacks that should be taken into consideration as well.

 Under proper circumstances, Reverse Home Mortgages can be an ideal way to increase spending power and provide for retirement; they provide for flexibility, low risk of default, flexible payment options, home ownership, among other advantages.  Contrastingly, some of the disadvantages of Reverse Home Mortgages include costly upfront fees, accumulating interest, and the very complexities surrounding these mortgages.  Homeowners should determine whether the advantages outweigh the disadvantages before deciding if a Reverse Home Mortgage is the best investment strategy. 

See Reverse Mortgage Disadvantages and Advantages: Your Guide to Reverse Mortgage Pros and Cons, NewRetirement, April 23, 2014.  

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.