Top 5 disadvantages of Reverse Mortgages

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.