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Reverse Mortgage Advantages & Disadvantages
 Reverse mortgages have helped hundreds of thousands of homeowners improve their quality of life in retirement. M&T Bank tries to ensure its customers fully understand how reverse mortgages work and whether one is right for them. Detailed below are both advantages of a reverse mortgage and disadvantages of a reverse mortgage:
 Advantages:
Quality Of Life
The money you receive with a reverse mortgage can be used for virtually anything. You can use it for basic necessities, or for other items you couldn’t otherwise afford. Ultimately, reverse mortgages have provided hundreds of thousands of homeowners an improved quality of life in retirement.
Independence
A reverse mortgage allows you to remain in your home, modify it for your needs and retain ownership of it.
 No Monthly Mortgage Payments
You need not pay back a reverse mortgage loan until you decide to move, sell your home, or your estate is settled.
Easy Qualification
Qualifying for a reverse mortgage is easy because credit score is not considered.
No Cash Needed For Closing
You can use the money you receive to pay the loan’s closing costs. Typically closing costs are simply added to your loan’s balance.
Disadvantages:
It’s Still A Loan
As is the case with any loan, interest will be charged on the money you borrow.
Closing Costs
As with any mortgage program, a reverse mortgage does have closing costs. These closing costs can be incorporated into the loan however, so no “up-front” money is required.
 Although Unlikely, Government Benefits Could Be Affected
The funds from a reverse mortgage do not affect regular Social Security or Medicare benefits, however, you should discuss the impact of a reverse mortgage on federal, state or local assistance programs with a professional advisor such as your local Agency on Aging (toll free at 1-800-677-1116), or a tax attorney. (Consult your Social Security, Medicare or other financial advisor to determine how reverse mortgage payments may affect your particular situation).
Limitations On Tax Deductibility
Interest on reverse mortgages is not deductible on your annual income taxes unless you make a pre-payment on your loan or the loan is paid off. (Consult your tax advisor).
Property / Age Qualification Limited
 Only your primary residence is eligible for a reverse mortgage; a second home or resort property does not qualify. Although a mobile home or cooperative may be your primary residence, these types of residences are generally not eligible for a reverse mortgage either. Reverse mortgages are also restricted to homeowners, 62 and over.
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