Advantages

• The proceeds are untaxed
• The estate will inherit remaining equity after paying off the balance
• The estate is not held personally responsible if the payoff balance exceeds the home’s sale
• Interest rates are often lower
• Credit score and income and not factored into eligibility
• No more monthly mortgage payments
• Homeowner can stay in the home for the rest of their lives
• Proves monthly or lump sum of income

Disadvantages

• Fees are higher than a traditional mortgage
• Needs based government programs can be affected
• Value of the estate’s inheritance will decrease over time
• It is still a confusing concept to many, even financial advisors