I am considering getting one.I think everything has a down side,but I haven't found one yet in that program.
2007-12-12 05:14:04 · 11 answers · asked by computer dummy 2 in Society & Culture ➔ Cultures & Groups ➔ Senior Citizens
The most popular Reverse Mortgage is the Home Equity Conversion Mortgage (HECM) which account for over 90% of Reverse Mortgages done to date. The HECM is Federally regulated and insured (FHA---HUD) They set the rules and regulations. AARP just released a study
(12-12-2007) here's the web address that will link you directly to the report on AARP website...
http://www.aarp.org/research/credit-debt/mortgages/2007_22_revmortgage.html.
You can also go directly to www.HUD.gov to research Reverse Mortgages. Seeing it's their program why not go right to the source. Part of the Reverse Mortgage process is that you have to talk to an independent HUD approved third party counselor to make sure you understand the program and that it was explained to you correctly. (government safeguard). There is no charge for this and you can do this anytime you want. Just another avenue to answer your questions. I hope these resources help in your decision making. If I can be of any other assistance let me know. For disclosure purposes......I have been in the Reverse Mortgage business for over 2 years and I am a Reverse Mortgage Consultant for EverBank Reverse Mortgage.
Regards,
Stephen
2007-12-13 02:29:51 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Not a good idea, there are some up front fees that need to be paid. Also you only get a portion of the value of your home, so lets say on a $300,000 (hypothetical) house you might be lucky to come out with a monthy amount of around $1,000 or less You also of course have to be 62 years or older to qualify. I went on line once and figured it out based on a higher amount with no mortgage and came up with $1,000. Thats not much considering. If you should decide to sell down the road any mortgage amount still owing would still have to be paid, as well as the amount lent from the reverse mortage. Same as when you die.
Why don't you sell it, then you at least can take the capital gains of $250,000 if single or $500,000 if married exemption Use that money to rent and with SS. that would give you a nest egg to retire on, along with any other retirement income you may have. Do not know how much your house is worth, or what your financial needs are at this time, so that is up to you to decide.
2007-12-12 09:08:30 · answer #2 · answered by Moe 6 · 0⤊ 1⤋
I read an article in AARP about reverse mortgage. They have excellent information on their web site.
http://www.aarp.org/
Mom was 83 when she did this. She is 92 now an just went to assisted living. Sold the house no problems.
2007-12-12 05:46:13 · answer #3 · answered by ♥ G ♥ 6 · 4⤊ 0⤋
It is a great adventure, but it does cost alot for gas and to hook up anywhere you want to stay. And I wouldn't want to do this alone. If you have someone who can come along and help share the expenses that would be great..I have known people to do this and love all the views and stops they take, lots of pictures taken,lots of difference people you will meet at these RV stops too.. Have fun!!!
2016-04-08 22:54:12 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It is good to know the details and laws/rules/regulations concerning this topic...
http://en.wikipedia.org/wiki/Reverse_mortgage
A reverse mortgage can often be a life saver for seniors...as long as they and their family members receive full training and are fully infomed and knowledgeable...
Reverse mortgages are not a device to make private lenders rich or to defraud and are regulated by the Fed.
2007-12-12 05:41:21 · answer #5 · answered by sage seeker 7 · 4⤊ 0⤋
I don't quite understand it, but I know what a mortgage is. Wouldn't everything be in reverse? I mean, you would get money back, but wouldn't they tell you after awhile that your house is no longer your's? Seems to me whoever is working with you, giving you money would be buying your House! Maybe it doesn't work like that.
2007-12-12 05:22:34 · answer #6 · answered by Anonymous · 2⤊ 1⤋
I don't think it's a good idea. It seems like another scheme, or advertising ploy of the mortgage companies. There's nothing clever or brilliant about it; only a way to decrease equity in your home that should REMAIN THERE.
2007-12-12 05:18:03 · answer #7 · answered by Anonymous · 2⤊ 1⤋
Glad you asked because we've been curious too! Going to save this page for future reference.
2007-12-12 17:15:08 · answer #8 · answered by night-owl gracie 6 · 0⤊ 0⤋
I would't touch a reverse mortgage with a ten foot pole.
2007-12-12 05:29:17 · answer #9 · answered by Anonymous · 5⤊ 2⤋
Not my cup of tea -- think it's about 4 steps below declaring backrupcy (just another bank rip off in my opinion).
2007-12-12 05:46:51 · answer #10 · answered by Anonymous · 2⤊ 3⤋