Kiplinger offers a detailed look into reverse mortgages. Seems like a fair deal except the heavy upfront cost of securing the reverse mortgage for your home. A reverse mortgage loan for $200,000 can cost as much as $20,000 and more. When you are 62 years or older, and if you need money immediately, this may be the best option to help you maintain your luxurious lifestyle.
http://www.kiplinger.com/magazine/archives/2009/08/reverse_mortgage_rescue.html
Slow to adapt reverse mortgages, Texas is the last state not to offer this financial instrument.
One of the Texas consumer safeguards requires owning equity in a house before anyone could apply for a reverse mortgage…
With declining home values, lenders are hesitant to participate in a reverse mortgage. These are specialty loans only available to borrowers 62 years of age and older to release the home equity of the property in lump sums or multiple payments.
When home prices are falling, no lender wants to pay one dollar for a property that could be valued at fifty cents in a few years.