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Jim_slim
Guest
0.10 Dollars($)
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 Posted: Fri Oct 26, 2007 5:13 am Post subject: No assets, just social security – what to do? |
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The only income I can have is through social security payments of $720. I have to take care of my mom who's too old now. The house she own and will be mine once she dies as per the will. I had taken out $60,000 refinance loan to pay some bills and do some kind of repairs and there is $10,000 that I have yet to repay. I am worried about the social security; what will happen if my mother dies before me? Should I take credit card or any credit line or what is the best source of getting more funds currently at this age? I am 63 this year and have had a divorce, so no assets as such.
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 livinginnky
Moderator
Joined: 08 Sep 2007
Posts: 596
23.69 Dollars($)
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| Posted: Fri Oct 26, 2007 9:27 am Post subject: |
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Perhaps a reverse mortgage could help. I am not an expert on them but I know we have a couple experts around. If there was ever a situation it may benefit someone it would be a situation like yours.
What I do know is when you get a reverse mortgage the lender pays you payments instead of the other way around. The negative is eventually you either have to pay them back or sell the home.
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Eric Matthews
Mortgage Refinance and Home Loan Guide |
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tgolden
Joined: 06 Jan 2007
Posts: 50
Location: South Carolina/ Nationwide
27.80 Dollars($)
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| Posted: Fri Oct 26, 2007 9:57 am Post subject: Tony Golden |
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Hello Jim_slim,
Eric is right. The true purpose of a reverse mortgage is the benefit as a financial tool to help people like yourself and your mother.
In simple terms, the reverse mortgage will allow you to pay off any debt you currently have against the home (actually a requirement of the loan), if there is any available equity in the home you can use it how you wish. Most people put it into a credit line so it is available if needed for any reason.
So with this type of mortgage you can pay off any debt that may be using up your limited monthly cash flow, put some money in a credit line for emergencies and you will not have to make monthly payments as long as your mother lives in the house since she is the current owner. Also she can live in the house as long as she is alive or until she decides to move out. At that point the mortgage will need to be paid back within a reasonable time period.
Another option could be to put the home in your name and you do the reverse mortgage and this will allow you to live in the home payment free for your life time. Otherwise you would apply for a reverse mortgage when your mother passes on as you are over 62 and will own the home at that time.
There is a lot more to it and it can seem complicated. The truth is that many people are in your same situation and utilize the reverse mortgage to live a better life and find peace of mind.
If I can help answer any other questions or send you information that will help you understand reverse mortgages better please let me know.
Regards
Tony Golden
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Our mission is to help mortgage consumer make the right decisions. We are more then Loan Officers, we are also Financial Advisors.
I specialize in Reverse Mortgages, FHA, VA financing and Cash Asset Manager Loan Program |
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Jonny
Guest
0.10 Dollars($)
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| Posted: Sat Oct 27, 2007 7:03 am Post subject: |
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Hi Tony,
Great information! But I would like to ask you if Jim goes for the refinance what is wrong in it? I would like to know why reverse mortgage is better than refinance.
Regards,
Jonny |
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tgolden
Joined: 06 Jan 2007
Posts: 50
Location: South Carolina/ Nationwide
27.80 Dollars($)
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| Posted: Sat Oct 27, 2007 6:31 pm Post subject: Tony Golden |
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Hello Jonny,
Thanks for the question and it is a good one.
Based on the information Jim has stated I am assuming there is 2 issues he is dealing with and it all stems from the limited income of 720.00 per month.
Mainly it will be very difficult to get financing approval on such limited income and it looks like the cost of a monthly mortgage payment would further limit his monthly cash flow. The reverse mortgage can serve as a benefit in this situation due to the fact that income and credit rate is not needed to qualify for a reverse. Also there are no monthly payments so Jim can get money to help with his needs and not have the fianancial burden of using his fixed income to pay the mortgage.
A reverse mortgage needs to serve a financial purpose and limited monthly income is one of the biggest reasons.
Keep in mind with a reverse mortgage since you do not pay monthly installments the loan in a compounding debt. The interest is added to the loan. If used properly a reverse mortgage can have many benefits and help solve these types of problems.
Please let me know if I can explain in more detail. I always recommend that this type of loan be fully explained before consideration
Regards
Tony Golden
_________________
Our mission is to help mortgage consumer make the right decisions. We are more then Loan Officers, we are also Financial Advisors.
I specialize in Reverse Mortgages, FHA, VA financing and Cash Asset Manager Loan Program |
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livinginnky
Moderator
Joined: 08 Sep 2007
Posts: 596
23.69 Dollars($)
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| Posted: Sun Oct 28, 2007 9:40 am Post subject: |
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| Quote: | | I always recommend that this type of loan be fully explained before consideration |
As you should with any loan program. The best customers are educated customers.
Best of luck
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Eric Matthews
Mortgage Refinance and Home Loan Guide |
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