SONS and DAUGHTERS of BBCMF THE RUSH TO INVEST in LAND and REAL ESTATE.

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Shifting into reverse
Five questions to ask when considering a reverse mortgage

Those considering a reverse mortgage should ask themselves five questions:
Is downsizing a better option? As part of their due diligence, homeowners should seriously look at selling and moving as a way to tap home's equity. Those who do will sometimes realize they could get more for their home than they thought or that another living situation is more attractive. Or, they realize their best option is to stay in the current home.
How long do you plan to stay in the house? A reverse mortgage doesn't make sense, for example, for someone planning on moving two years in the future.
What are your financial needs and how would a reverse mortgage help you? If the mortgage is being considered to supplement a rainy day fund, it might be best to consider a line of credit that can be tapped when it is needed, Mahoney said. If money is needed for a shorter period of time, maybe a home equity loan is a better choice.
How much could you get from a reverse mortgage? Financial Freedom's Web site offers a calculator to help: http://www.financialfreedom.com/calculator/Input_new.asp.
When do you need the loan? In addition to waiting for less expensive products in the pipeline, remember that homeowners are eligible for more money the older they are and the more their house is worth.