Here are some questions you could consider and talk to your family about before applying for a reverse mortgage.

1. Is there another, cheaper way for you to achieve your financial goal?

   Before tapping into your home equity, see if you can find a way to lower your expenses. If you need extra money to cover living expenses, see if you qualify for a state or local program to lower your bills. You might also consider downsizing to a more affordable home.

2. Do you need to tap into your home equity now or should you save it for an emergency?

   Home equity is often the last resource to turn to in a financial emergency. It is best to wait until then if you can.

3. Are you on a fixed income with no other assets?

   If your income is very low, a reverse mortgage may not be the best option. If you take a reverse mortgage and then can’t pay your property taxes and homeowner’s insurance, you could face foreclosure. A different choice for you to consider is selling and downsizing. If you sell your home, you can use all of your equity to move to a more affordable home.

4. Do you have children or other heirs to whom you plan to leave your home?

   Taking out a reverse mortgage can jeopardize your ability to leave your home to your heirs. If this is a priority for you, think twice about a reverse mortgage.

5. How long do you and your family intend to live in the home?

   In most cases, a reverse mortgage makes more sense if you plan to remain in your home a long time. Most reverse mortgages require you to pay insurance premiums so that if the loan balance grows higher than your home is worth, you won't have to pay the excess. If you don't plan to remain in your home for a long time, there may be cheaper ways for you to achieve your goals.

6. How much will it cost you in fees to obtain a reverse mortgage?

   Fees vary depending on the reverse mortgage product you choose. Fees and other charges can be high in some cases, so it is important to shop around for the best deal.

7. How will you pay for property taxes and homeowner's insurance?

   It is important to have a plan for paying your property taxes and homeowner’s insurance as long as you live in the home. If you fall behind on either of these, the lender could foreclose on your reverse mortgage and you could be forced to move.

8. Does your spouse wish to remain in the home if you die?

   Discuss this question carefully with your spouse or partner. If you take out a reverse mortgage without adding your spouse as a co-borrower, your spouse will have to move out or repay the loan if you die. By co-borrowing, your spouse will be able to remain in the home indefinitely.

TIP: Talk to a Department of Housing and Urban Development (HUD)-approved housing counselor if your are considering a reverse mortgage. You can find a HUD-approved housing counselor by visiting HUD's counselor search page or calling HUD’s housing counselor referral line (1-800-569-4287). HUD-approved counselors may charge a fee, typically $125 or less.

TIP: Be careful about taking out a reverse mortgage as part of an investment strategy. There is no such thing as a risk-free or guaranteed investment. You should think twice about borrowing against your home to invest. All investments can lose value and that could put your home at risk if you cannot keep your home in good repair or pay your property taxes or homeowner’s insurance later on.