Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Reverse Mortgages: How seniors can tap equity for extra cash

If you're a senior, looking to cash out your home equity without having to worry about monthly payments, a reverse mortgage is what you may need. If you'd like to know how a reverse mortgage can help you, and what it's all about, check out the reverse mortgage information below:



What is a reverse mortgage?

A Reverse mortgage (reverse equity mortgages) is a home loan that provides you with a steady flow of tax-free income either in installments or in lump sum. Since the loan provides an easy flow of cash, it is the preferred choice of many seniors in the country.


How does a reverse mortgage work?

It's just the reverse of a traditional mortgage which requires monthly payments. With a reverse mortgage, your debt accumulates as the bank doesn't collect the payments till the loan period ends or you or your heirs sell. Here are 5 things you should be aware of before you apply for a reverse equity mortgage:
  1. How to get the cash:
    You can get the reverse mortgage loan funds in different ways.
    • The lender or the company can provide you with a single payment.
    • You may ask for monthly cash advances.
    • You can apply for a line-of-credit that gives you the opportunity to withdraw a required amount of cash whenever you are in need.
    • The lender may allow for a combination of monthly cash advances as well as "credit-line account".
  2. Reverse mortgage limit:
    The maximum loan amount offered ranges from $200,160 to $362,790, depending on the county you live in. However under the 2008 New Housing Bill, the loan limit has been raised to $417,000. For high cost housing areas, the limit is further raised to $625,000. However, the loan amount that you will qualify for, depends upon the factors given below:
    • Age of the youngest borrower
    • The appraised value of your home
    • The equity built up in your home
    • What loan program you choose
    • How you want to get the loan funds

    Besides the above factors, the loan limit may also depend upon current interest rates and closing costs on home loans in your area.

  3. How to qualify for the loan:
    Unlike other loan options, there is no minimum income or credit requirement to qualify for a reverse mortgage. However, if you have unpaid debt on your home, it should be paid off before you apply for a reverse mortgage or else paid off as soon as you get the loan proceeds. Check out if you are eligible for reverse mortgages.
  4. Loan types you can apply for:
    You'll find a variety of loan products available in the market. They're the FHA-insured Home equity conversion mortgage (HECM), the Home Keeper Mortgage offered by Fannie Mae approved lenders, and others. You need to compare these programs and decide on the one that suits you. Check out more on Reverse Mortgages Comparison.
  5. Reverse mortgage interest rate:
    These loans are mostly adjustable rate mortgages that adjust on a monthly, semi-annual, or annual basis. The interest rates are usually based on the 1 year U.S. Treasury (T-Bill) or the LIBOR index. However, you'll also find fixed rate HECMs offered by certain lenders. However, rate changes do not affect the principal you get; rather it affects the amount you owe.


What are the advantages of a reverse mortgage?

Reverse mortgages assisted countless homeowners improve their quality of life upon retirement. These are very flexible financial planning products with limited restrictions attached to them. Key benefits of this offer are listed below-
  1. No restrictions on the use of money: Money that you receive through a reverse mortgage can be utilized for whatever purposes you want. You can use it for funding the education of a family member, for traveling purposes, for meeting the basic necessities of life or for anything else. You can also park the amount in another account as savings for the rainy days.
  2. Less risks of default:In a reverse mortgage, there is no chance of losing your home for non-payment. Whereas, in case of a home equity loan, you may lose your home because of non-payment. Again, reverse mortgage lenders don’t have any claim on your other assets and income.
  3. Federally guaranteed:There are a variety of loan products available in the market. The most widely used reverse mortgage is the federally guaranteed home equity conversion mortgages (HECM). HECMs are managed by the Department of Housing and Urban Affairs. Since these offers are federally backed, you will continue to receive payments even if the reverse mortgage lenders default.
  4. Tax benefits:Reverse mortgage is treated as a loan. The money that you receive through this route is tax-free. This is regardless of whether you receive the money in monthly basis or in lump sum amount.
  5. Retains home ownership:As long as you stay in the house, you retain ownership of the house. However, you are responsible for paying for the property taxes, insurance and maintenance.


Are there disadvantages or dangers of reverse mortgages?

There are 3 reverse mortgage pitfalls to watch out for:
  1. Rising debt and falling equity:
    A traditional mortgage requires you to make payments and build up equity. But reverse mortgages reduce your equity because you don't need to make monthly payments, and causes your mortgage debt ratio to increase. Your equity gets lower unless your home value appreciates. Thus, reverse mortgages are often known as "rising debt and falling equity" loans.

    Here's an example on "Rising debt and falling equity".

    Monthly Loan Amount: $2,000
    Yearly Loan Advance: $24,000
    Yearly Interest Rate:
    8%
    Original Home Value:
    $250,000
    Appreciation Rate of Home Value:
    5% per annum

    End of Year Principal Amount ($) Total Interest ($) Loan Amount ($) Total Home Value ($) Home Equity ($)
    (Total Home Value - Loan Amount)
    1 24,000 1,052 25,052 262,500 237,448
    2 48,000 4,102 52,102 275,625 223,523
    3 72,000 9,224 81,224 289,406 208,182
    4 96,000 16,495 112,495 303,876 191,381
    5 120,000 25,990 145,990 319,070 173,080

    As the above calculation shows, even if your home value goes up, it may not be enough to raise your home equity. The rate of appreciation in the home value should be high enough so that even if your loan balance increases, your home equity won't go down easily.

    Now, when the appreciation isn't high enough, your equity will reduce, and as a result you may not have a home to leave for your heirs. This is because your heirs will only receive your home when the value of the home is more than what you owe.

  2. Rates and closing costs:
    The rates being adjustable can be higher at times thereby raising your interest and hence your debt because you aren't paying monthly. Some reverse mortgages have high closing costs, although under the new housing laws, the costs have been cut down and capped so that older homeowners can afford to get a reverse loan.
  3. Eligibility for Medicaid benefits: The loan proceeds may affect your eligibility to receive Medicaid benefits and Supplemental Social Security income (SSI). However, you can still qualify for Medicare and Social Security Income.

In spite of the reverse mortgage cons, these loans are preferable options when it comes to paying for your healthcare costs, remodeling your home, making a big purchase, or changing your lifestyle. Moreover, if you have debts to pay off, need money for someone's education, or wish to plan for a vacation, reverse mortgages are worth considering.

Related Articles
Related References:
meta title: 
What is a reverse mortgage?
Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My dad has a RM Line of Credit, he withdrew $1,000 and the amount he owed increased by the $1,000 and the Credit amount decreased by the $1,000. This appears to him as if he got $2,000. He wants to know why both amounts changed he would have expected that the Line would decrease by $1,000 and that would have been it. Can you explain this transaction in detail so I can relay that to him.

Like | Dislike | Share | Posted: Tue, 03/09/2010 - 19:34 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi deckerdt,

As you have a reverse mortgage on your current home, I guess it will be difficult for you to qualify for a loan to buy a property for your daughter.

Thanks

Like | Dislike | Share | Posted: Fri, 01/15/2010 - 23:28

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi ARR,

The non-borrowing spouse can [url=http://www.mortgagefit.com/refinance.html]refinance[/url] the reverse mortgage into a normal conventional loan loan after your death and pay it off on time. She can file an affidavit of heirship and get the property transferred in her name or in the name of the children.

Thanks

Like | Dislike | Share | Posted: Sun, 06/23/2013 - 21:42

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>when does the lender start paying the condo maintenance and property taxes etc??

Never. When you're underwater, you're not responsible for the negative debt, but you're always responsible for taxes, insurance and maintenance.

Like | Dislike | Share | Posted: Fri, 07/22/2011 - 17:26

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

It will be difficult for you to qualify for a reverse mortgage on a condo. Nevertheless, you should contact the local lenders and check out if they can help you with a reverse mortgage for a condo.

Like | Dislike | Share | Posted: Mon, 02/21/2011 - 23:47

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

To Raymond: What lender will go in second lein with a home equity behind a reverse mortgage?

Also I would point out to captjdl that the under 62yr old spouse isn't protected if something happens to the borrowing spouse, if possible they should wait until their spouse is over the age of 62.

nwreverse.com has a lot of information

Like | Dislike | Share | Posted: Fri, 07/16/2010 - 21:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my parents want to get a loan from their house here in california that is paid off already, they are trying to buy property in texas they also dont live here in california they live in texas they are both retired they also own property in texas. Is this reverse mortgage what they should be looking into?

Like | Dislike | Share | Posted: Fri, 05/28/2010 - 07:51 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My aunt has a reverse mortgage and is now in a nursing home. we want to keep the house in the family. If we pay off the loan will he deed go in our name?

Like | Dislike | Share | Posted: Thu, 01/27/2011 - 10:07 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

two brothers inherited a house, both listed on deed, brother A has lifetime tenancy, brother B wants to be removed from title and recieve his 50% equity. Brother A non-compliant and unable to secure loan for buy-out both in 80's do not get along and no possiblity of reconcilation. What are brother B's options?

Like | Dislike | Share | Posted: Sun, 03/17/2013 - 22:07 | Post subject:

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>does that then become his asset and start the 5 year look back all over again

Are you on Medicaid? If yes, a lump sum distribution like that can harm your benefits.

Like | Dislike | Share | Posted: Sat, 04/23/2011 - 12:27

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Parents are in their 80's have been renting for 5yrs - they want to buy a house can they get a reverse mortgage loan if they put money down?

Like | Dislike | Share | Posted: Fri, 10/09/2009 - 13:39 | Post subject:

hecmrev's picture
hecmrev | Joined: October 10, 2009 09:30 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

They can only get a reverse mortgage on the home they live in. A reverse mortgage is a great option for those who are 62 yrs or older who would like to payoff there mortgage or cashout equity.

There has never been a better time to get a reverse mortgage with the lower closing cost that are now available.

Like | Dislike | Share | Posted: Fri, 05/28/2010 - 08:44

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I'm 82year old and own a totaly pay for condo apt.in Bethesda,MD;have no mortgage and no debt - I dont want to sell my property,however I need money-Do I qualify for any kind of loan ? Thank you -Lorena -

Like | Dislike | Share | Posted: Sat, 10/16/2010 - 23:21 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

On a reverse Mortgage can my mom consent to giving me her car since she can not drive anymore? Or for that matter sell it??

Thanks

Like | Dislike | Share | Posted: Tue, 02/08/2011 - 06:17 | Post subject:

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Yes.

Like | Dislike | Share | Posted: Thu, 01/27/2011 - 12:36

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What happens when the reverse mortgagee dies?

Like | Dislike | Share | Posted: Thu, 01/07/2010 - 15:38 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if my house is worth 40,000 and i owe 27,000 is it possible i could get areverse mortgage

Like | Dislike | Share | Posted: Sun, 08/15/2010 - 06:12

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Star!

Welcome to forums!

When you sell off the property, you will be liable for paying off the reverse mortgage in full. The lender won't come after the set aside money if you pay off the reverse mortgage in full.

Sussane

Like | Dislike | Share | Posted: Wed, 08/31/2011 - 21:37

xyc8287454585709's picture
xyc8287454585709 | Joined: August 18, 2011 03:42 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Like | Dislike | Share | Posted: Tue, 09/23/2014 - 23:08

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We have a reverse mortgage, need to sell, and wondered what happens to that set aside money for loan serviceing that they put away from our equity?

Like | Dislike | Share | Posted: Wed, 08/31/2011 - 19:01 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome JEH,

You can add your spouse to the deed only if you he or she is 62 or more years of age.

Like | Dislike | Share | Posted: Thu, 11/14/2013 - 20:27

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Yes.

Like | Dislike | Share | Posted: Tue, 02/08/2011 - 09:35

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a 1994 mobil I own the lots. I would like to trade up to a home close to my children. Can this be done and would my new home be free and clear If I paid it off?In other words reverse means they take in the old property for the money loaned and then the new property will be clear except for the difference in price? with that paid off the new property is mine free and clear? Jackie

Like | Dislike | Share | Posted: Thu, 09/17/2009 - 08:45 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Are there any Reverse Mortgage options that don't requre the owner to live in the house{owner is in a nursing home} and the house is being rented to help pay for the nursing home?

Like | Dislike | Share | Posted: Sun, 09/27/2009 - 11:19 | Post subject:

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>Does a double wide mobile home qualify for a reverse mortgage

Yes, as long as it was manufactured after June 15, 1976.

Like | Dislike | Share | Posted: Sun, 11/11/2012 - 15:23

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a reverse mortgage on a property that is owned solely by me. Can I add my spouse to the deed as joint tenant with right of survivorship?

Like | Dislike | Share | Posted: Thu, 11/14/2013 - 13:25 | Post subject:

sunnyca2009's picture
sunnyca2009 | Joined: August 4, 2009 07:15 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

The reverse mortgae is for some one who already owns a houseand have some equity in the house

If your parents are planning to buy a house now, they cannot get reverse mortgage

Like | Dislike | Share | Posted: Fri, 10/09/2009 - 17:20

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>what happens to that set aside money for loan serviceing that they put away from our equity?

The equity that was set aside for the Service Fee will disappear. The Lender will convert the portion of equity they're entitled to for the Monthly Service fee, and you'll have full access to the remaining equity that was set aside for that purpose.

>>The lender won't come after the set aside money if you pay off the reverse mortgage in full.

It doesn't work like that with a Reverse Mortgage, Sussane.

Like | Dislike | Share | Posted: Thu, 09/01/2011 - 06:38

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Kmc!

Welcome to forums!

When the person who has taken a reverse mortgage on the property dies, his heirs will have to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] the mortgage and pay off the dues. Or, the lender can sell off the property and recover the loan dues.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 01/07/2010 - 21:48

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Your Dad is seeing two things.

The amount he owes consists of equity that has been converted into cash. It will increase every month. You see, every month an interest charge is incurred against his outstanding balance, but it's deferred. So once a month the Lender reserves a portion of his retained equity for the payment, thus increasing the amount he owes on a monthly basis. All of the equity that's been reserved will be converted into cash when the mortgage is paid off.

The Credit Line consists of equity that hasn't been converted into cash yet. So when he took out $1,000.00, he actually converted $1000.00 worth of equity into cash. And when that happened it was added to the amount he owes (in addition to the regular monthly interest charge).

That's why he's seeing it listed twice on his monthly mortgage statement - the Lender is showing him the credit line withdrawal and that its been added to the outstanding balance.

He can also pay down the credit line, and he'd see the opposite effect on his monthly statement if he did that.

Like | Dislike | Share | Posted: Wed, 03/10/2010 - 07:28

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks for your responses so far, I have another question now?
If the rest of the set aside goes back into the equity after they take what fees are due for services of fees. Then does that equity money subtract from what is owed on the house by three or four thousand, or do we have to ask more money for the house to get that money that way?

Like | Dislike | Share | Posted: Thu, 09/01/2011 - 08:53 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks for your responses so far, I have another question now?
If the rest of the set aside goes back into the equity after they take what fees are due for services of fees. Then does that equity money subtract from what is owed on the house by three or four thousand, or do we have to ask more money for the house to get that money that way?

Like | Dislike | Share | Posted: Thu, 09/01/2011 - 08:53 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a reverse mortgage at this time and want to purchase a home for my daughter, can I do that? I still live in my primary residence.

Like | Dislike | Share | Posted: Fri, 01/15/2010 - 20:14 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have qualified foe a reverse mortgage until the company found out I borrowed some money against my home with my spouse signing the note, but she is not on the title. What company can I go through for a non borrowing spouse reverse mortgage.

Like | Dislike | Share | Posted: Fri, 06/21/2013 - 11:24 | Post subject:

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>If the rest of the set aside goes back into the equity after they take what fees are due for services of fees.

That depends on how much the monthly service fee was (it would be between 25-35 per month) and how long they've had the Reverse Mortgage. If it's not listed on the monthly statement, it's listed on the Amortization Schedule you received when the final loan documents were signed.

If the youngest person on Title is in their 60's or 70's, the Lender usually sets aside approximately 14 years worth of equity for the Service Fee. For example, (and this is an estimate) if the fee is $35.00, $5,880.00 would have been set aside. If the Reverse Mortgage ended after 24 months, only $840.00 would applied towards the Service Fee. The remaining set aside would convert back into equity that belongs to the homeowners.

>>Then does that equity money subtract from what is owed on the house by three or four thousand

No

>>or do we have to ask more money for the house to get that money that way?

You don't have to do anything. It happens automatically.

Like | Dislike | Share | Posted: Thu, 09/01/2011 - 09:18

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My dad turned 60 this year and is in bad health an no longer able to work. He's collecting SSI and medi-cal. I talked to him and asked about reverse mortgage to see if this is an option for him. Does anyone know if he would qualify for this and how would it work if he is the only one on the title. If he were to pass what would happen to the home, especially because there is not will or living trust.

Like | Dislike | Share | Posted: Thu, 09/17/2009 - 11:38 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

hi my husband and i have a reverse morgage, his name only because of my age. he has passed away and i have been in my house for 20 years what do i do now i dont have 96,000.00 to pay off this loan.and i dont want to move.

Like | Dislike | Share | Posted: Thu, 06/27/2013 - 12:35 | Post subject:

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>if the home is less in value after the reverse mortage and there is no equity how can a senior find help for home repairs to their home to bring it updated with electrial and other home repairs such as a new roof and heatingif the home is less in value after the reverse mortage and there is no equity how can a senior find help for home repairs to their home to bring it updated with electrial and other home repairs such as a new roof and heating

How did the homeowner receive their cash proceeds? Credit Line? Monthly payment? Or cash out?

Like | Dislike | Share | Posted: Thu, 11/18/2010 - 07:30

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My Bank still does non-borrowing spouse Reverse Mortgages, but I don't understand why you'd need one. Is your wife under 62?

Like | Dislike | Share | Posted: Fri, 06/21/2013 - 11:28

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

She is under 62. She is also my 4th wife and understands my home is to be left to my kids.

Like | Dislike | Share | Posted: Fri, 06/21/2013 - 12:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if the home is less in value after the reverse mortage and there is no equity how can a senior find help for home repairs to their home to bring it updated with electrial and other home repairs such as a new roof and heating

Like | Dislike | Share | Posted: Mon, 11/15/2010 - 15:29 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

You can refinance the mortgage to add your name to the loan if you are 62 years or more of age. This will help you save the property and you will also be able to live in it.

Thanks

Like | Dislike | Share | Posted: Thu, 06/27/2013 - 21:22

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am looking into a reverse for my mother. My sister lives with her and we are concerned about her housing future. When our mother passes how much time is there for my sister to relocate?

Thank you

Like | Dislike | Share | Posted: Mon, 08/02/2010 - 08:14 | Post subject:

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>I have a reverse mortgage at this time and want to purchase a home for my daughter, can I do that? I still live in my primary residence.

Yes, as long as you can qualify for the new mortgage. Bank of America also offers their proprietary Reverse Mortgage, the "Platinum" program, and it'd allow you to purchase a second home with a Reverse Mortgage. So you'd be able to have your original Reverse Mortgage, and another Reverse Mortgage for your second home, and you could allow your daughter to live in it. But you'd have to live in it sometimes too, because it has to be your second home. That might be an easier way to go, because it'd be easier to qualify. That's the "pro". The "con" is you'd have to have a significant down payment in order to do that.

Ultimately the answer to your question is "yes", it's allowable, and you can accomplish your goal with either a Forward or Reverse mortgage.

Like | Dislike | Share | Posted: Sat, 01/16/2010 - 08:26

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Byrdladi,

If you're 62 years of age, then you can apply for a reverse mortgage. However, once you receive the reverse mortgage proceeds, you'll have to pay off the existing loan immediately.

Thanks,

Jerry

Like | Dislike | Share | Posted: Mon, 08/16/2010 - 03:35

Jessica's picture
Jessica | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

A reverse mortgage will be the better option for you as far as your age is concerned. Also, you don't require paying monthly installments until and unless you sell off the property with the reverse mortgage. Besides, this kind of a home loan has several advantages for the seniors.

For more knowledge on this home loan, please click here.

Regards,

Jessica.

Like | Dislike | Share | Posted: Sun, 06/18/2006 - 20:47 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my son put money on a house for me in a state where he lives - because of health reasons i moved into the house of which is not to my liking and have a mortgage on it , i would like to find one and have put this one up for sale - have equityof about 25,000 to either stay in this house and fix it or get a bridge loan , and find another home to live in, i,m 83 live on 1,300 a month- which is better for me - reverse or the bridge, thank you

Like | Dislike | Share | Posted: Sun, 06/18/2006 - 03:47 | Post subject:

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Have the Brothers researched a Reverse Mortgage? That's their solution, if they have approximately 35% equity.

Like | Dislike | Share | Posted: Mon, 03/18/2013 - 08:39

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Reverse is good, as as you age will allow to have it. And the best part is you will enjoy several benefits too.

Like | Dislike | Share | Posted: Sun, 06/18/2006 - 04:33 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

In the reverse mortgage program, after you die/move out--is the entire amount due immediately from the heirs before it is sold, or is there a repayment plan option. or does that depend on the guidlines within each loan contract

Like | Dislike | Share | Posted: Tue, 06/13/2006 - 09:04 | Post subject:

Page loaded in 0.887 seconds.