What Not To Do

A reverse mortgage usually does not make sense if...

• You don't need the money. It sounds simple, but if all you need is a credit line for a safety net in the event of emergencies, then wait. Your house will be worth more and you'll get more from a reverse mortgage, especially if rates are stable or declining.
• You are planning on moving in two years or less. The costs will usually outweigh the cash.
• You are relatively young, healthy and your property value is low, say less than $50,000. The upfront costs of a reverse mortgage eat into how much you can get. Use the Reverse Mortgage Cash Calculator to see your reverse mortgage options.

And Don't...

• Let others tell you how to spend your money or pressure you into investments.
• Put your reverse mortgage funds in a long term, deferred investment unless it is thoroughly discussed with an objective financial advisor.