[Corrine G]

In a few years we will qualify for a reverse mortgage and wonder what are the benefits and downfall of it. We would like to do some traveling and help out are children but wonder if it is a good idea to do a reverse mortgage. Your professional opinions please.

[Mortgageexprt]

The last thing you want new golden retirement years is to be strapped for cash and not be able to stay in your house. With the saying stock market lower income, higher medical bills, and higher taxes retirees are finding it harder and hurt to get by. If you are a baby boomer considering retirement in the next 5-10 years you may want to consider a reverse mortgage to pay for travel, buying a separate second-home, or starting a new business. In this article will be reviewing the pros and cons of a reverse mortgage to help you determine if a reverse mortgage solution is for you.

Basically, a reverse mortgage is alone against your current home you do not have to pay as long as you live in your home. If you own your home outright, the banks will take cash of your home without you having to move or repay the loan each and every month. You can receive the cash in several ways. The first is in a lump sum payment. The second is you can receive a payment each and every month. The third way, is the banks provide you a line of credit. You can manage the line of credit however you see most fit.

There are many positives to a reverse mortgage. Many of the benefits depend on your current financial situation. With the recent decrease in home values, you will want to consider the ramifications of a reverse mortgage.