thrugh financial freedom
2006-09-08 12:38:34 · 16 answers · asked by jerry 1 in Business & Finance ➔ Renting & Real Estate
I don't know of anyone that has one, but I think it is worth investigating for people that are retired and do not wish to keep the house in the family when they are gone.
2006-09-08 12:41:22 · answer #1 · answered by ADF 5 · 0⤊ 0⤋
Ok reverse mortgage if you fit this criteria. You don’t have any children you would like to leave your property to, because technically it belongs to the bank. As it is a lease of term of your life. Your errors may buy the property back from the bank at the built interest and principle tied in to the loan. A reverse mortgage gives you the opportunity to have a house for your life term or of title holders. It also can give you money in your pocket for retirement. You must live in the house as to say you can’t rent it out. If you are caught you will be foreclosed. It is tied to conditions of which you will follow depends on lender. You will never have to pay a mortgage again but you most pay taxes on your property and you can not use the house on your income taxes so no tax break. You most be a senior citizen as well that is all now you could make the decision from there.
2006-09-08 20:54:08 · answer #2 · answered by business creature 2 · 0⤊ 0⤋
Jerry,
Most people answering are getting confused.
There are two types of loans out there:
Reverse Mortgages
Negative Amoritization Mortgages
Reverse Mortgage are only for people 62 years or greater and they can be a great way to go. Increases cash flow, eliminates monthly payment. The best part of them is that if you owe more than the house is worth, you don't need to pay it back. The home can not be foreclosed on.
Negative Amoritazation loans are totally different. Mortgage Brokers try to sell them because they are an extremelly low monthly payment and the start rate is around 1%. The problem is that the interest goes on the back side of the loan and needs to be paid back or you lose your house. Not only that, but the 1% is only good for 1 month. After that you are looking at 7.5% to 8%. Not good!
If used in the right way, a neg am loan can help certain people: self employed, commission sales, but that is about it.
You need to understand what you are getting yourself into.
My best advice: ask a ton of questions to your loan officer!
You can email me at lavautem@yahoo.com if you have any other questions.
Thanks,
2006-09-08 22:12:49 · answer #3 · answered by Crystal S 1 · 1⤊ 0⤋
You could do a reverse mortgage within your family. My parents will be doing a reverse mortgage with me. I'll pay an amount to them each month and own part of the house. Because it's within the family it saves a lot of hassles when the unfortunate day comes that they are no longer with us. It saves taxes after death because the house doesn't need to be transferred, one of the people on the ownership is still living. I guess it probably works better because I live with them... but just an idea.
2006-09-08 19:47:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I think you have to consider carefully all the ramifications of a reverse mortgage. Eventually the bank will own your home, so you have to make sure that the income will last long enough for you not to run into a problem. However, if you are old enough and you don't want to leave it for your family, it can make a difference in the style in which you live.
2006-09-08 19:42:23 · answer #5 · answered by kny390 6 · 0⤊ 0⤋
Everyone has an opinion on reverse mortgages. Reverse mortgages are a GREAT product. IF they fit your situation. It really depends on your situation. I am a reverse mortgage specialist and I run the website www.reversemortgagepage.com. If you are interested, I'd be more than happy to speak with directly. Just email me.
2006-09-10 15:05:34 · answer #6 · answered by Byron W 3 · 0⤊ 0⤋
Financial Freedom is a very good company. I use them solely for all of my reverse mortgages. They are a subsidiary of Indymac bank and they do not sell their loans to anyone else. They fund about 80% of all reverse mortgages in the country and are truly the leader in the industry. You are in very good hands.
2006-09-08 22:23:50 · answer #7 · answered by bburns31 3 · 0⤊ 0⤋
Reverse Mortgages are great for older people who do not have enough savings or assets to fund their retirement lifestyle. It allows them to access the equity in their house whilst living in it. The major drawback is with every payment the bank owns more of the house and you may not have anything to pass on to your children by the end of it.
2006-09-08 22:24:57 · answer #8 · answered by T Sanchez 1 · 0⤊ 0⤋
What is that? Sounds like a scam. Don't trust a mortgage that you have to ask about on yahoo. Remember, if a mortgage sounds too good to be true, it is. Lenders will always get their money out of you, no matter how sweet the terms sound.
2006-09-08 19:39:47 · answer #9 · answered by Anonymous · 0⤊ 0⤋
I would not recommend a reverse mortgage to anyone who has family.
2006-09-08 19:40:13 · answer #10 · answered by Anonymous · 0⤊ 0⤋