Posted: Thu Jan 19, 2006 1:43 am Post subject: Is reverse mortgage right for me?
I and wife are 78 and 75 years of age respectively and we are still paying $800 to the bank every month. We owe about $110,000 on a property that is worth $700,000 - $800,000. One of my friends suggested me to take reverse mortgage. Can you me some information on reverse mortgage? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
Posted: Thu Jan 19, 2006 2:09 am Post subject: RE:
Hi,
Your friend has suggested the best option you have. It is a very good option that older people have. They can live their retired life without any tension. In fact by the name only we can understand that instead of the borrower paying the bank, bank pays the borrower.
Posted: Thu Jan 19, 2006 2:32 am Post subject: RE:
Hi Andy,
Welcome to MortgageFit Forums,
I agree with jerry reverse mortgage is a very good option you have. It is a type of loan that allows older people to unlock there equity they have build up in their homes without being forced to sell or move out of your house.
Many seniors have fixed income or no income and all they have is the paper wealth tied up with their homes. But by borrowing against that equity they can have money to pay their bills and enjoy their rest of the life.
For more information on this topic please visit our section on reverse mortgages.
Posted: Thu Jan 19, 2006 2:52 am Post subject: RE:
Hi,
According to me the only drawback of this type of loan is that you may have nothing to leave for your children. But at least with this type of a loan you will not be a burden on your children as you live your retired life.
Posted: Sat Jan 28, 2006 8:41 am Post subject: Reverse Mortgages
The last statement about leving nothing for the estate is an error. when the last person living in the house on a reverse mortgage either pases away or moves out into a nursing home as an example the estate has a period of time to find a forward mortgage for the home or sell it. The payoff would be higher than where you are now because you are defering interest. That being said it sounds like you have plenty of equity and your reveerse mortgage can be set up several different ways.....if you have grand children you can take cash out and set up college funds for them etc...you have a lot of flexabilty in your situation.......get a hold of good broker and have them review your options. _________________ Cedric Kalvesmaki
***Professional Disclaimer***
While I am a Mortgage Professional, this advice is generic in nature only.
I think Kalvesmaki has stated correctly. When the last survivor in a reverse passes away the cash received from a reverse mortgage along with the interest and the closing costs has to be repaid to the lender.
But if there is any equity remaining after that, then it passes to the heirs.
jerry
