Reverse Mortgages; Should I?

Reverse mortgages seem to be almost too good to be true at first glance. And like everything else that seems too good to be true, it too has its downsides. The closing costs on this type of mortgage tend to be a lot higher than usual. Most instances the closing costs will be “rolled” into the loan, but that means less money for you in the long-run.
Reverse mortgages are getting more and more popular with people that are planning for retirement.

Pros and cons of a reverse mortgage; retirement planning

Here, Elder Law Attorneys Cohen & Oalican will go more into detail to help you learn if getting a reverse mortgage is the right thing for you:

Pros of a reverse mortgage

• Receive a monthly income
• Don’t have to rely on family members for income support
• Extra money for vacation

Cons of a reverse mortgage

• High closing costs
• May affect your eligibility to collect Medicaid
• Loan has to be paid back after your death – home will have to be sold

There are alternatives to a reverse mortgage. You could choose to just sell your home and downsize to a smaller/less expensive home or apartment. You could get a roommate; a roommate – if you can find the right one – will also offer companionship at the same time they are helping with the bills.

Make sure you explore all your options before jumping into anything, especially something that will burden your family. Call Elder Law Attorneys Cohen and Oalican with any questions that you may have. Offices: Boston, Raynham and Andover Massachusetts.