Reverse mortgages are offered in all 50 states and the Caribbean.  The difference between a reverse mortgage and a traditional reverse mortgage is that with a reverse mortgage, the lender pays you to live in your home.  You will never have to pay back the loan until you leave.

Hundreds of thousands of seniors have enjoyed the many benefits a reverse mortgage can bring.  There are, however, some pitfalls that you should be aware of.

Reverse Mortgage Pitfalls include:

• Loan Fees
With a reverse mortgage, you are converting your equity into cash.  That cash, however, comes at a price.  There are fees associated with the loan when you sign up, which is usually covered with the cash you receive when you get paid.  The cash you use is also charged interest, which is payable when the loan becomes due (when you leave your home).

• Rising Debt, Falling Equity
Every time a check is paid out to you from your reverse mortgage loan, the equity in your home declines.  In other words, you are “spending down” the equity in your home in exchange for the ability to continue living in it, without making any repayments while until you leave the property.

• More Complicating than a Traditional Mortgage
A reverse mortgage can be confusing with all of the fees associated with the loan.  It is important that you contact an approved HUD Counselor, your lawyer, and/or financial advisor so you can understand what there is to know about a reverse mortgage.A reverse mortgage is not for everyone.  You should consult an experienced financial advisor to help you identify what your options are.  For more free information on reverse mortgages, feel free to browse through RMHelp.org.