When it comes to a reverse mortgage, wise consumers weigh
advantages and disadvantages prior to signing on dotted line.Let’s start on a positive note, you could do what most borrowers do and opt for reverse mortgage line of credit. Just think about how you would then be able to draw on loan whenever money is required for daily living expenses, medical bills, prescription costs, home repairs, etc. This could really enhance your retirement years including in-home care expenses in later years.
Furthermore, your new found income does not affect regular Social Security payments or Medicare benefits. And lenders cannot foreclose on loan for life of borrower.
Okay, that’s all well and good but how do you turn major disadvantages of a reverse mortgage into a positive one? It’s all in perspective. For every negative there is a positive to obtaining this loan.
It’s true a reverse mortgage loan may affect your eligibility for state and federal government assistance programs such as Medicaid but it also gives you an important financial cushion and does not (as mentioned above) affect your regular Social Security payments or Medicare benefits.
