Reverse mortgages are not a panacea – they may not be appropriate in many situations:

* You don’t need money or a credit buffer. If you don’t need money or a credit buffer then why get a reverse mortgage? For that matter, why get any mortgage? Make sure to take a long view of your possible future income and expenses though.
* You don’t plan to stay in your house at least another four years. Closing costs on reverse mortgages are higher than on forward mortgages. The closing costs become smaller compared to the interest the longer you hold the loan. After four years or so, the loan starts getting very cheap but up to then it can be expensive.
* You are unlikely medically to be able to stay in your home another four years. You must look realistically at your physical health and weigh the advantages of using the reverse mortgage proceeds versus the possibility of experiencing a condition that would require you to move out of your home early (ending the loan).

Reverse mortgages may be appropriate if any of the following are true:

* You have a negative cash flow (expenses more than income)
* There is a significant chance your expenses will rise in the future causing a negative cash flow
* There is a significant chance your income will decrease in the future causing a negative cash flow
* You have some other use for the money. Some people want money to take vacations while they still can get around decently.

Dave Parker – ParkerInReverse.com

602-750-8166
At The Lending Company