The reason I’m writing this article is I’m getting many questions from my customers asking me if this is the reverse mortgage is the right answer for them.

The truth is the reverse mortgage is not a great decision for all borrowers. Situations are unique and they must be evaluated individually.

I have a few borrowers with a bunch of money in savings but the majority have next to nothing and are looking for financial answers.

Generally speaking most are on social security and some form of pension, but others are still working and planning on retirement.

My concern is the worst case scenario. If someone really ran into a major financial need, like a medical issue, would they be able to handle it?

As we get older big medical needs are more likely, not less. As mature adults we must be prepared.

Along these lines I like to see prospective borrowers use the mortgage intelligently to increase their disposable income and to use that income in the proper places.

For most the equity in the house is their largest asset it may be needed for a vital reason. The point is once its gone these folks wont have another money source to draw on.

For a very conservative perspective one should use the reverse mortgage when it is absolutely needed. If a mortgage exists maybe it is best to wait to refinance it with a reverse mortgage.

If there is no mortgage I like to see folks use the line of credit option and use their proceeds sparingly. By using proceeds this way interest accrues minimally against the equity of the home.

Serendipity of the line of credit is the unused portion of the money line accrues interest and actually grows. This has the net effect of growing the line of credit for use later.

There is no doubt the reverse mortgage serves a great financial purpose. However, it should be used with the utmost care.