Are you a senior aged 62 or older thinking about a reverse mortgage? You're not the only one. Now that the baby boomers are entering their 60's, reverse mortgages are expected to become quite popular. So, you're wondering what are some pro's and con's of reverse mortgages?

Covering the cons is Thomas Kostigen. "Here's where the red flags are: appraisal fees, origination fees, annual insurance premiums and closing costs, which can total $10,000 or more on a loan of just $200,000. Then there's the fact that a lump sum payout could affect any other government subsidies an elderly person receives." (more)

Of course, not everyone is quite so negative on reverse mortgages. Jennifer Openshaw
states, "Because you make no monthly payments, the amount you owe grows larger over time. As your debt grows larger, the amount of cash you would have left after selling and paying off the loan generally grows smaller. The good news is that you can never owe more than your home's value at the time the loan is repaid." (more)

Reverse mortgages, one might say, are much like comfort food. Being able to stay in your own home and have extra money to supplement you lack of savings, pension, and/or social security can be very comfortable. Still, financially, you almost certainly do better selling your home, buying something smaller and using the savings as your new nest egg.

Before you apply for a reverse mortgage make sure you talk to your financial advisor or tax preparer.