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Utilizing a reverse mortgage can provide you with a number of benefits in the right situation. However, there are sometimes whenever a reverse mortgage is not a good idea. Here are a few situations where you might want to avoid getting a reverse mortgage.
Short Time Frame
If you are not planning on living in the house for very long, you might not want to get a reverse mortgage. You need to plan on living in the property for least 5 years, but ideally you should plan on living therefore somewhere between 8 and 12 years.
Damaged Property
If your property is significantly damaged beyond repair, you may not want to utilize a reverse mortgage. You may not be able to get the proper value for the loan and you might have to spend more money in repairs than you can borrow.
Younger with Money
If you have just reached the age of 62 and you have plenty of money, there is not much of a reason for you to consider getting a reverse mortgage. With the reverse mortgage program you are going to get larger payments as you get older. Therefore, in this situation, you might want to hold off on getting the reverse mortgage for a few years.
