1. Reverse mortgages are not often understood, not even by real estate agents or mortgage brokers, so, when you apply for a reverse mortgage, check for the company/agents experience on reverse mortgages.
2. The cost of a reverse mortgage is usually higher than any other lending alternative like refinances or equity lines of credit
3. Reverse mortgages are more complicated than conventional mortgages making it harder to get you approved by a reverse mortgage lender.
4. A reverse mortgage, reduces the equity of your home.
5. Even though the money you receive from a reverse mortgage is tax-free, it might affect your ability to qualify for public assistance like Medicare, Social Security Income, Medicaid/Medicare ,etc.

So, before you apply for a reverse mortgage, think about the above disadvantages and discuss them with your love ones to find out if applying for a Reverse Mortgage is the right thing to do for you.

A reverse mortgage might be appropriate for you if you are 62+ years old, and:

1. You own your home free and clear or you just have a small loan against your home.

2. You don’t have intentions on leaving your home as an inheritance to your heirs. (Sometimes they don’t deserve it anyways! :))

3. You want to enhance financial lifestyle to enjoy your golden years.

4. You want to keep on living on the same house because other housing alternatives might be unaffordable.

5. You need money for major medical expenses.

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