reverse mortgage is government funded program for people over 62 years of age.
2007-01-21 00:17:10 · 4 answers · asked by maddie 1 in Business & Finance ➔ Personal Finance
A reverse mortgage is a solution for someone that needs additional income and has equity in their house. Here is a good guide on reverse mortgages: http://www.regionalmortgages.com/reverse.html
2007-01-21 00:24:48 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Reverse mortgages are in my opinion just a legal way to steal the home of an older couple.
You are loaned money against the equity in your home...do you think that is without interest? You do not have to pay the money back, so the interest keeps building and building. By the time both have died or sold there is nothing left of your equity...it has all gone into interest paid on the loan. That is why they only loan 40% of your equity. In the end you in fact give them your home for the interest owed...they sell the house at a higher price and get all their money back plus.
The only way I would consider such a loan would be if you had no one in your family left you would want to give them something of an inheritance.
2007-01-21 00:41:06 · answer #2 · answered by pinelake302 6 · 0⤊ 1⤋
try AARP or Reverse Mortgage Page
2007-01-21 05:22:28 · answer #3 · answered by Byron W 3 · 0⤊ 0⤋