When looking for the reverse mortgage disadvantages, research tends to come up a bit short. S We are going to highlight them for you so you can see the disadvantages and understand how to deal with them.

1. There is no more interest write off.

a. With a reverse mortgage, monthly payments are not a requirement. If you are not paying payments, you are not paying interest. The write off will come once you make payments on the loan. The reality is, most do not do this for several years.

b. Would you rather have an interest write off or no house payments? As a general rule, most would prefer the increased income over writing off interest payments.

2. The mortgage balance will grow over time.

a. Almost all reverse mortgages accrue interest. Let me say it so it is very clear. Your mortgage balance will increase as the months go on. You are still being charged interest even though you are not making payments, and that interest has to go somewhere. It gets added to the amount that you owe the lender, thereby increasing your balance.

b. Usually reverse mortgages are paid back after the homeowner passes away. If you haven't made any payments for several months or years, you have achieved deferring your payments and interest indefinitely.

3. Reverse mortgage fees are expensive:

a. If you are compare fees on a reverse mortgage to a "regular" home loan, the fees are higher. Since there are no monthly payments on a reverse mortgage, but you do have payments on a normal loan, maybe "they" think there is some justification for higher fees.

b. In the last year or so, there have been major reductions in the cost of a reverse mortgage. It would be wise to check into the loans again if cost was the reason that you held off in the past. You're going to be pleasantly surprised on how much the costs have been cut.

4. You leaving less money to your heirs.

a. Your equity is being spent if you do a reverse mortgage. This is important to understand, especially if you desire to leave the home or money to your kids. Keep in mind though, there are ways to leave money to your heirs that do not include your home.

b. Why should you feel guilty spending your equity? It is yours isn't it? Your alternative would be to ask for financial assistance from your children, asking them to help with the monthly expenses. In my opinion, it is better for them to save for their own retirement, rather than count on an inheritance. It is great to leave an inheritance to your kids, but I don't believe you you suffer to do so.