2006-09-24 12:42:07 · 9 answers · asked by monty 1 in Business & Finance ➔ Personal Finance
Reverse mortgages aren't for everyone. The negatives are, that they do have upfront costs, and it's not something you want to do if it's important to bequeath the property to your heirs. I think of it as a last resort for individual in desperate need of income.
Reverse mortgages can provide a valuable resource to individuals when the circumstances are right, however. More detail in this article: http://themoneyalert.com/ReverseMortgageArticle.html
2006-09-25 05:53:28 · answer #1 · answered by RV 2 · 0⤊ 0⤋
Monty,
I'm sorry but many of these answers are just wrong and represent the most common misconceptions of reverse mortgages. Please go to these websites for a little more information or feel free to contact me. This is all I specialize in.
http://www.griffinloans.com/myths.html
http://www.griffinloans.com/faqs.html
Really the only downfall is that your heirs will not receive 100% of the equity of your home when you pass but they should still receive a substantial amount. These loans are designed so that you always have equity left in your home in the future.
2006-09-27 16:53:16 · answer #2 · answered by bburns31 3 · 0⤊ 0⤋
Just another name for a Balloon payment, meaning you can only do a reverse mortgage for 5,7, or 10 years and then your mortgage goes back to the normal rate + to include interest. Only smart for people who are planning to move in a few years and do not have any equity in the house. ...it is kinda like cheap rent.
2006-09-24 19:48:49 · answer #3 · answered by Rada S 5 · 0⤊ 2⤋
A reverse mortgage is only good when it's appropriate, and not good when it's not appropriate. That's the "catch".
2006-09-24 19:45:57 · answer #4 · answered by troyboy 4 · 0⤊ 0⤋
the catch is that if you die before the mortgage is paid or if you miss some payments, the mortgage company gets your house.
essentially it's just another mortgage - you are borrowing money on your house.
2006-09-24 19:48:11 · answer #5 · answered by Anonymous · 0⤊ 1⤋
You basically give up your home to the mortgage company, but you still get to live there. If you have no one to leave assets to then go for it... If you want to leave your children property then DON'T !
2006-09-24 22:35:29 · answer #6 · answered by Kitty 6 · 1⤊ 1⤋
Fees can be high. Anytime there's a financial instrument with complicated features, companies can usually hide high fees.
2006-09-24 23:24:24 · answer #7 · answered by Jim H 3 · 0⤊ 1⤋
after they are done paying you, they own your house.
2006-09-24 19:43:05 · answer #8 · answered by Anonymous · 1⤊ 2⤋
yep.
2006-09-24 19:43:57 · answer #9 · answered by mojo2093@sbcglobal.net 5 · 0⤊ 0⤋