Make Money - Reverse Mortgage

Question: I just retired and live in a small home that my children will not be interested in after my death. I would like to know more about a reverse mortgage. Am I a good candidate?

Dr. Gala's Response: One of the first questions I ask someone considering a reverse mortgage is whether keeping the home after you’re gone is important. You’ve already answered that question. While your heirs can elect to keep the home, most likely the property would transfer to the lender. Most people have spent their lifetimes working to pay off their home to own it “free and clear”. For those people, the reverse mortgage doesn’t seem to make sense. You have to think “outside the box”. There are many factors to take into consideration, but the bottom line is that a reverse mortgage allows you to use the equity in your home without having to make a mortgage payment. It puts you in control of how your equity will be used.