Reverse mortgages vs refinancing

Planning for retirement is an excellent strategy especially when you do it many years before you need it, It allows you to make adjustments to make it work. As for Reverse Mortgage, the primary difference between them and forward mortgages is the requirement to qualify by income and asset guidelines in order to get the loan. The Lender wants some assurance that they will be paid back during the amortization period of the forward mortgage. A Reverse Mortgage is not paid back during your lifetime (typically). Usually your heirs sell the house and take the proceeds to pay off the Reverse Mortgage. Anything that is left is theirs. They have gotten more popular lately since the government has allowed the FHA to guarantee them to the lender. This results in a much better deal for the borrower. Fees are about the same as those you would pay for a purchase money mortgage and they are controlled by the government to protect Seniors.As a planning strategy they make sense if your goals are to not accumulate value in the bricks and mortar of your house so you can pass it on the your heirs. The Reverse mortgage allows you to use the value in your home during your lifetime. You qualify if you are 62 or older, own your home( small mortgage OK) and it is your primary residence. The only negative is your heirs will receive less value in the home when you die compared to a home that odes not have a reverse mortgage. If you are not concerned about this then a Reverse is an excellent planning vehicle.