IS IT RIGHT FOR ME?
10 critical questions you must ask yourself (continued)
05. Do you wish to remain living in your home forever?
Why is this important? A reverse mortgage works best if you plan to stay in your home for a long time. The longer you stay the less expensive the loan is because the associated upfront fees. Borrowers typically pay origination fees, closing costs and, in the case of HECM loans, a mortgage insurance premium. Those fees are typically rolled into the loan amount so you don't have to pay them up front, and they help guarantee you won't have to repay the loan as long as you stay in your home. But if you plan to move in a few years, you'll end up paying for protection you don't need.
06. Do you expect to move or permanently leave your home in the next few years?
Why is this important? Once again, a Reverse Mortgage works best if you plan to stay in your home for a long time. Perhaps you don’t plan on living their forever, but if you expect to move in the next few years, a Reverse Mortgage may not be your best option.
07. Are you only concerned about a one-time financial expense?
Why is this important? If you need money for a one-time expense, such as a new roof, you may find other programs that are quicker and/or less expensive than a Reverse Mortgage.
