Anybody know any draw backs with reverse mortgages?
Reverse mortgage is drawing from the equity in your home and not having to pay it back until you move or die. It is only for older folks.
By
grmm
Posted on
05/31/06 Total Answers
4
Answers-
If you live longer than you thought, you are either paying rent or are homeless!
The idea is to allow you to live in your home and get "some" of your money now. However nothing is for free, and you would get much more money if you sold your home to being with. Of course then you need somewhere to live, but you have a bunch of money to take care of that problem.
Answer by :
Just a friend. On Date
2006-05-31 13:12:36
Just be careful that the funder is a reputable company and is not likely to be taken over or go out of business. What can happen is that a few years into the reverse mortgage the funder needs to raise capital and sells the mortgages it holds over your property and the buyer then seeks to foreclose on the deal early. Can be devastating for a older person to be told that the house they thought they were going die in is being taken away from them and they are out on the street.
Answer by :
kiwi_trevor On Date
2006-05-31 13:14:37
If you live longer than you thought, they can't kick you out of the house in most reverse mortgages. If they sell the mortgage to someone else, the new mortgage holder can't kick you out. There can be problems if you have to leave your house to go into a nursing home. Here are some links about reverse mortgages:
Answer by :
Joe On Date
2006-05-31 13:46:57
Some of these answers are incorrect. If you go with a FHA insured reverse mortgage there is no way anyone will ever kick you out of your home. FHA loans require a one time 2% fee in the closing costs to cover you incase the lender is bought or goes bankrupt. They are designed so that you will always have equity in your home in the time that you want to sell the home or you pass away.
Reverse mortgages aren't for everyone but if you are over 62 and your heirs think it's more important for you to live a good life rather than inherit 100% of your equity it is a good choice for you.
The only drawback to it is that you are not leaving the full amount of your equity to your heirs. I specialize in reverse mortgages and my company is the largest reverse mortgage originator in the Southwest. We are also licensed to do loans nationwide.
Some good websites to check out are
www.reversemortgage.org
and
http://www.aarp.org/money/revmort/
and
www.griffinloans.com
Also feel free to contact me if I can be of any help. I would be glad to send you some free information. You can contact me through this email or bburns@griffinloans.com
