In some ways, the timing of a reverse mortgage loan matters. For example, it's a requirement that you must be over a certain age (usually 62) to qualify for a reverse mortgage loan which means that starting to think about it earlier than this doesn't make a lot of sense. Additionally, changes in the housing economy and the devaluation of homes may contribute to the role of timing in getting a reverse mortgage. But timing isn't the only thing to consider when thinking about getting a reverse mortgage loan.
The reverse mortgage loan may or may not be impacted by the change in the value of the home over time. If the value of the home drops considerably, the senior may decide that a reverse mortgage isn't worth it based on the new value of the home. Alternatively, the senior may decide that obtaining a reverse mortgage to stay in the home makes more sense than selling the home in a bad market.
What is more important than timing is to look at all of the pros and cons of the reverse mortgage for the individual. What alternatives do you have to getting a reverse mortgage loan to meet your financial and housing needs? What would you do with the money from a reverse mortgage loan and is that a necessity or a luxury? These kind of considerations can be just as important (if not more so) as the timing of a reverse mortgage loan.
Question of the Day: How important to you is the timing of obtaining a reverse mortgage loan?
