It seems reverse mortgages are getting more popular in these difficult financial times but does the benefit out weigh the potential cost? Yes, you do get a portion of the equity now to pay bills or use for any other propose and you get to stay in your house. These two benefits may be the only things that matter to you, if they are, a reverse mortgage may be the financial help you need.
But if you dig a little deeper, you’ll find additional upfront costs to get and maintain the reverse mortgage. And if you are concerned with maintaining your Medicaid benefits, you should get good legal advice before going down the reverse mortgage path.
Check out this article about reverse mortgages from BankRate.com. It provides a get overview of pros and cons of reverse mortgages.
Alternatives to a reverse mortgage may include:
1. Home equity loan
2. Downsizing to a smaller home or condo
3. Selling an annuity you may own
4. Selling a life policy you no longer need
* Please consult a lawyer, licensed insurance agent, securities broker, or other financial professional for advice regarding your personal situation.
By John Weimer, CFA
For more information, please go to MyNoteMarket.com
Monday, July 13, 2009
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