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Chester Said:

Is a reverse mortgage safe?

We Answered:

Just to clarify for those who are not familiar with this term, a reverse mortgage is where a lender will actually 'buy back' your home from you based on your current equity allowing people that are retired to have a livable monthly income from their home, and not a lump sum from a home sale (not to mention a home to live in). This works in monthly payments from the lender to you personally.

As far as being safe, yes reverse mortgages can be a great way to draw the equity you've earned on a home or property to supplement an existing income.

You will of course want to fully understand the brevity of the loan from the lender and your options and obligations and how this might effect your estate in the event of death.

Gladys Said:

Are reverse mortgages safe and a wise way to go to increase cash flow?

We Answered:

Reverse mortgages are wonderful for older people on a fixed income. It draw from the equity in you home to provide you with extra money. They are only for older folks and the aarp web site has alot of info. You don't lose your home when you pass and you can live more comfortably now. They are great and underrated. If you are young though its not an option for you.

Jackie Said:

Is a Reverse Mortgage safe?

We Answered:

It might prevent you from ever moving again and will cost your heirs a lot of what you might have wanted to leave them.
Say you took one at 62 the minimum age thinking you would be in that house forever. At 75 you might decide to move closer to the children but now owe half the value of your house on a mortgage. If you sell to move you will not be able to buy a new home and get much less to help pay the rent.
My mom just moved at 82 after 35 years in her old house. She is now renting from my brother and was able to sell on a contract because she didn't have a mortgage. She will be getting 1,250 a month for the next 30 years. If she would have taken a reverse mortgage at 80 not knowing she might decide to move she would have had to pay out the 15K or so in reverse mortgage cost plus the amount she borrowed and interest. This could have been 30K or more she would have had to pay to be able to sell. If she didn't have the money she wouldn't have been able to sell on contract so would have had to get the buyer to get a mortgage. The buyer already has mortgages on his house and his rental house and just wanted it as another rental. This was better for everyone she has a guaranteed income and her grandson in law got another rental house without qualifying.

Stephen Said:

how safe is a reverse mortgage ..will i still have a house for my children after i die will they be required?

We Answered:

Yes, your heirs would need to pay for the debt out of the proceeds of the estate. This is not always a bad thing -- in many cases the heirs may plan to sell the house or are in a position to repay the loan from other assests (or take their own loan out against the house).

Any bank should be willing to discuss the concept without requiring ypou to commit. They do need some info to be able to see what you would qualify for (and this includes your age and information about the house).

http://www.hud.gov/offices/hsg/sfh/hecm/…

Katrina Said:

Is a Reverse Mortgage a safe loan?

We Answered:

A reverse mortgage is a really great thing if you have lots of equity in your home, and you don't have very much liquidated cash to enjoy your retirement. My mother had a house paid in full in Santa Barbara, CA but was living off of social security checks. I helped her get a reverse mortgage loan from Financial Freedom. Then she was living life to the fullest until she passed away 6 years later. My siblings were livid when they found out she got that loan, because they thought she would eat up their inheritance. But she sure loved life those last years of her life, going to the off-track horse racing, bought a new car, new hi-def tv, remodeled her kitchen with Viking appliances. So, yes it can be a very good thing. But you must remember that it is basically selling your house slowly back to a financial institution. If my mom would have lived long enough, my brother and sister (and me) would not have inherited a dime, but that was ok with me.

Anyways, you can find some limited info and resources about reverse mortgages here:

http://reversemortgageresource.blogspot.…

If I were you I would just do a Google search for "HUD Reverse Mortgage" or "Financial Freedom"
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