information about reverse mortgages from someone who has done it?
would like to know if anyone has done the reverse mortgage and is it a good idea
By
carley
Posted on
03/22/10 Total Answers
4
Answers-
They are for only people who have great credit and tons of equity in their homes and need additional income as their retirement is not enough to make ends meet.
I am a mortgage banker in TN
Answer by :
golferwhoworks On Date
2010-03-22 09:22:31
my inlaws did it on their home in las vegas. it is a terrible idea. idk if you know what youre doing when you get one of those loans. what the homeowner is doing is taking all the equity out of the house now. so my inlaws house was lets say, worth 150,000. lets say the owed the bank 100,000 on the balance of the home loan. they get fifty thousand, right? well that money is upfront. they say when they die the house will go to me and my husband but it wont be worth two cents at that point. usually old people take out those type loans when they need the money now as opposed to later in life. (being that they dont know how long theyre gonna live for)
Answer by :
dianee On Date
2010-03-22 09:26:34
I do not like reverse mortgages.
Most people decide to move out of their home at around age 80.
Since they can no longer cut the grass or even get around.
At that time, they will have NOTHING to their name.
Nothing, absolutely nothing.
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Answer by :
Judy On Date
2010-03-22 09:27:31
Reverse mortgages do not have a credit requirement. The loan is against the value of the home so there's no income or credit requirement. In fact, you can have very poor credit and still qualify for a reverse mortgage.
In addition, a reverse mortgage does not allow you to borrow the entire amount of your home's equity. While you are eligible to borrow a greater percentage of your equity the older you are, it is unlikely that you will ever eat up all your equity. Furthermore, if by some chance the loan balance did some day exceed the value of your home, you can never owe more than your home is worth. The FHA guarantees the lender against this particular risk.
Reverse mortgages allow homeowners who are 62 or older to access valuable home equity to meet daily expenses during retirement years. While these are not cure-all loans, they are very good options for people who need additional resources during their retirement years and plan on living in their home long-term. They are absolutely not good short-term financing solutions as the closing costs can be expensive.
If you are 62 or older and have significant equity in your home, you feel that you will stay in your home long-term and you believe your equity can be put to better use than being tied up in your home, then you should look into a reverse mortgage. Once you learn more details about the loan program you will be in a better position to make a decision as an informed consumer.
