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-But there is one big drawback with [[http://bellaterra.wikia.com/wiki/Bellaterra_Wiki|reverse mortgages]]: high up front closing costs that can sometimes reach $20,000 or more. Combined with the regular interest that accrues on the loan balance, the up front costs can make this an extremely expensive way to borrow. To spread these costs out and make the cost of borrowing reasonable, it is imperative that the borrower be confident in their ability to remain in the home for at least 5-7 years and, preferably, longer. Unfortunately, government data shows that most HECMs are paid off in seven years or less.
-Regardless of how you choose to use the money from your FHA insured HECM [[http://bellaterra.wikia.com/wiki/Bellaterra_Wiki|reverse mortgage]] as a senior you can enjoy the peace of mind and quality of life you deserve without worrying about meeting monthly living expenses and using the equity in your home without making payments.
-So yes, there are some downsides to the Reverse Mortgage programs, but for many folks the positive features of these loans outweigh the negatives. If you are strapped for cash or simply want more at hand in case of a medical situation or any other type of emergency, these options can be worth looking into.
-Reverse mortgages are hot. Baby boom demographics, inadequate retirement funding, and problems in the traditional mortgage market (pushing brokers into alternate products) have combined to make marketing of [[http://bellaterra.wikia.com/wiki/Bellaterra_Wiki|reverse mortgage]] products to senior citizen homeowners one of the hottest niches in the mortgage business.
-~ Improve or modify a home? While this may not be an expansion of the home, the early part of retirement is a great time to re-purpose your house to accommodate the way you will be living for the next ten, twenty, thirty years and on. Maybe it's time to expand the kitchen, widen the hallways or remove some steps, or exchange the old pool in the backyard for a beautifully landscaped garden. As we get older, a top reason people get [[http://bellaterra.wikia.com/wiki/Bellaterra_Wiki|reverse mortgages]] is to outfit their house for their new lifestyle.
-Always make sure that you are dealing with the right kind of lenders for your safety. The reverse mortgage loan is so unlike the common home loan in so many ways. To make sure that all is safe for you, make it point to let a loan specialist or someone who is a professional for the loan to check on the [[http://bellaterra.wikia.com/wiki/Bellaterra_Wiki|reverse mortgage]] loans that you are about to file.
-So you can see that things might get very complicated when you need to resolve an estate with an upside down reverse mortgage. If the seniors no longer live there due to illness, this will make it even more complicated as you will need to find a place for the personal effects to go, possibly having to rent a storage unit, etc. Also noted is that some reverse mortgage companies seem to take on the personality of a debt collector. They immediately are not helpful and begin to treat you (the executor) as a flake that doesn't pay their bills. It's very interesting that they treat the elderly so kind when the [[http://bellaterra.wikia.com/wiki/Bellaterra_Wiki|reverse mortgage]] begins. But unfortunately, the bank changes personality when the seniors pass away. The wonderful commercials on TV about reverse mortgages make it sound like it's a wonderful thing for all seniors; however please do your research before you or someone you know decides to take this step. It may be a good thing for some circumstances, but not for all.
-An "interest-only" HELOC loan typically requires monthly payments equal only to the accumulated interest on the amount borrowed to date. With care it is possible to borrow an amount each month that provides cash for living expenses and is adequate to make the monthly interest-only payment. In this way the HELOC mimics a [[http://bellaterra.wikia.com/wiki/Bellaterra_Wiki|reverse mortgage]] with interest building up in the loan balance until the loan is repaid when the home is sold.
-A Reverse Mortgage (RM) is a special kind of loan which can be obtained if you are at least 62 years of age (if married, the youngest must be at least 6 and own your own home, condo, or co-op. A [[http://bellaterra.wikia.com/wiki/Bellaterra_Wiki|Reverse Mortgage]] (RM ) converts a portion of the value (equity) of a home into instant cash. The main feature of this program is that you need not qualify for credit to obtain this loan.