The single most important question to ask before you consider a reverse mortgage is" Do you and you wife intend to remain in the house for the remaining years of your life?“ If the answer is yes, than you need to consider the following Pro’s and Con’s.Remeber that to qualify for a reverse mortgage you and your wife must be over 62 years of age, and have a loan to value ratio of 55-60%(approx).
Pros: With a reverse mortgage you make no mortgage payments but you are responsible for taxes and insurance. This improves your cash flow and augments your social security.
You and your wife will be able to stay in the house until both of you pass.
You have access to the equity in your house and can take it either in a lump sum or receive a monthly check.
Cons: The upfront costs are high. Therefore if you plan to stay in your home for short period of time the cost are too expensive.
Sometimes a reverse mortgage is seen by the heirs as an dilution of their estate. Discuss the Reverse mortgage with the children and expalin to them why you are considerating the move.
Summary: A reverse mortgage is an important decision and before you decide on a strategy, do your home work. I have available for people considerating a Reverse Mortgage a pamphlet with the 20 most important questions you should ask. I would be gald to send it to your e-mail.