The major advantage of a reverse mortgage, especially for folks looking to retirement, is the fact that it is a great way to increase ones cash flow. By getting a reverse mortgage people are able to access the equity they have earned by owning a home. Of those in the best position to take advantage of a revers mortgage are those who have paid off the better part of there standard mortgage. What ever ones reason for wanting the money they have in there home, a reverse mortgage can help them get to it.

There are lots of ways a person can receive the funds that come with getting a reverse mortgage. Of those options people can choose to get there money in one lump sum, set up a monthly payment plan, or establish a line of credit. In fact they can even choose to mix and match these options, giving them even more options. The money can be spent how ever the individual sees fit. Reverse mortgages are also very attractive to seniors because in most cases they dont effect the benefits they are receiving from Social Security or Medicare.

Reverse Mortgages need not be paid off until they have ether died, sold the home, or moved out. This provides much protection from turbulent housing markets and protects the survivor of those who have passed on, in that they can continue living in the home if there spouse Is the one who has died. Another layer of protection provided by a reverse mortgage is that by law, so long as the borrower stays true to the terms and agreement of the reverse mortgage, they can not be foreclosed on.

For the most significant advantage of a reverse mortgage one must look to the fact that when the final payments of a reverse mortgage is due the amount owed on the loan has increase as the home equity has increase while the moneys have been dispersed over the lifespan of the loan. When all said and done, many times the amount owed on a home is almost the same as the value of it. Sometimes a homes value has decrease enough so that the value is actually less than that which is owed on the original loan. Traditionally this is just too bad for those who are responsible for the loan, but with a reverse mortgage there is no obligation to pay any amount greater that the actual value of the home at the time. Its like a depreciation insurance saving many form finding them self upside down on there mortgage loan.