Financial institutions particular value business customers very highly. As a result they are very competitive when comes to enticing new business customers. New businesses are particularly attractive and banks will often agree very good deals to encourage startup enterprises as once they have custom they are in a good position to retainit. It is always prudent to shop around and talk to numerous banks to find best deals on offer. Consider not only rates for new business, but also how current customers fair when compared to other banks. This will give you a good idea of long term competitiveness of an existing bank. There are several internet comparison engines that can get you started on this process.

As well, loans under these programs are without recourse. This means that lenders can not attach other assets of borrowers or their heirs in event that reverse mortgage debt exceeds property value.

On a another note, if home is sold and sales proceeds exceed amount owed on reverse mortgage, excess money goes to you or your estate.

There will always be some concern with homeowners who would like to leave an inheritance for their children and home is to be that cash inheritance.

Note:

As with all loans, be careful not to default on regular or common charges, such as property tax, insurance, utilities etc, as these could all lead to loan/mortgage being reclaimed early (foreclosed).

Typically, lender will have an option built in to contract to increase your debt by paying these charges on your behalf, should you default, and this is not an option you want them to exercise, as you will then start paying interest on those charges too!

Reverse mortgages can be very useful, but treat carefully as they can also have a sting in their tail.

Keep an eye on outstanding balance every month, versus value of your home for peace of mind.

And as with most major decisions, speak to an expert who knows your situation and long term plans before applying for a reverse mortgage. As a matter of fact, in U.S., mandatory counselling is required prior to applying for a reverse mortgage. An approved counsellor will educate you about reverse mortgages and determine whether this is your best option. Then, given your particular situation assist you in determining which reverse mortgage product best suits your needs. The U.S. Department of Housing and Urban Development has a list of approved counselling agencies posted online at Home Equity Conversion Mortgages Resources.

AARP has also entered picture as a major information source for reverse mortgages. (www.aarp.org/revmort) They have a guide (including a nifty calculator) that can help you figure out if a reverse mortgage is right for you.

For Canadians: - Shop Carefully!

Although home equity conversion products (reverse mortgages) are widely available in US, Canadian homeowners have a more limited selection. You can check out Canadian Home Income Plan.Canadian Home Income Plan.