If you are considering taking out a reverse mortgage, make sure to keep certain things in mind before doing so. You will want to ensure you are making the right decision for you.
If you learned about a reverse mortgage via the TV, keep an open mind. TV commercials tend to keep certain things out. There are alot of extra fees involved such as closing costs. This include the appraisal fee as well as the origination fee. Other extra expenses include mortgage insurance and taxes as well. Make sure you add up all these other expenses and insure that this is something you are able to do and are comfortable paying.
You will also want to find out if your spouse owns the house. You may have just forgotten to put the house in both of your names, however this step is crucial. You will want to make sure this is done. This is because if the person who owns the house passes away, then you now must pay back the loan on the house. If this cannot be done, then you lose the house. Double check this, this is a crucial step!
If choosing a reverse mortgage, then this should be as a last resort, not as a first resort. If you are able to find your retirement in other various ways, then a reverse mortgage is not for you. If you do not have alot of money, but do have equity on your house, then this may be the best option for you. Consider maybe selling the home, moving to a cheaper home and paying off your debts. You also would no be able to pass on your house to your children should you do a reverse mortgage. With all this mind, be sure to make the best decision for you.