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Marc Said:

Quick idea of reverse mortgage?

We Answered:

To get a reverse mortgage, there has to be no debt on the house.
So, no primary mortgage at least. I've heard of a few rare cases where a person had a small secondary mortgage on their residence.
I don't believe you have to own the land, but I could be mistaken.


If the mortgage is free and clear, she could probably get $300-$500/month, that's presuming that the costs of the reverse mortgage are only $10,000.


Good luck!

Sean Said:

What is a reverse mortgage?

We Answered:

I'm in the Reverse Mortgage Business and I'm going to give you some websites that will answer your questions. www.aarp.org
www.hud.gov
www.everbank.com
www.reversemortgage.org.
These sites will give you the information you need. Hope this helps.

Patricia Said:

Have any senior citizens ever taken out a reverse mortgage?How did it work out?Are you glad you did it?

We Answered:

The most popular Reverse Mortgage is the Home Equity Conversion Mortgage (HECM) which account for over 90% of Reverse Mortgages done to date. The HECM is Federally regulated and insured (FHA---HUD) They set the rules and regulations. AARP just released a study
(12-12-2007) here's the web address that will link you directly to the report on AARP website...

http://www.aarp.org/research/credit-debt…

You can also go directly to www.HUD.gov to research Reverse Mortgages. Seeing it's their program why not go right to the source. Part of the Reverse Mortgage process is that you have to talk to an independent HUD approved third party counselor to make sure you understand the program and that it was explained to you correctly. (government safeguard). There is no charge for this and you can do this anytime you want. Just another avenue to answer your questions. I hope these resources help in your decision making. If I can be of any other assistance let me know. For disclosure purposes......I have been in the Reverse Mortgage business for over 2 years and I am a Reverse Mortgage Consultant for EverBank Reverse Mortgage.

Regards,

Stephen

Shelly Said:

How can I go about obtaining a reverse mortgage and how do they work?

We Answered:

A "reverse" mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. No matter how this loan is paid out to you, you typically don't have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older. More information about reverse mortgages can be found here......

http://reversemortgageresource.blogspot.…



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Penny Said:

How does reverse mortgage work?

We Answered:

The following definition of a reverse mortgage was obtained from:

http://www.themortgagebrat.com/?page_id=…

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Reverse mortgage:
A financial tool which provides seniors with funds from the equity in their homes. Generally, no payments are made on a reverse mortgage until the borrower moves or the property is sold. The final repayment obligation is designed to not exceed the proceeds from the sale of the home.
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Each month the bank sends a check (or does a direct deposit) to the home owner. Generally, the bank calculates interest on the outstanding principle balance and capitalizes (adds) that interest to the loan balance.

I do not believe it is a bad loan type, for a retired person with little retirement funds and alot of equity in their home.

Of course, make sure any loan documents are reviewed by a lawyer and that you fully understand how the loan works.

Elizabeth Said:

Reverse Mortgages?

We Answered:

The idea behind reverse mortgages is that they are supposed to be issued to people who will pass away prior to the expiration of the reverse mortage's term. People lose their homes when they are healthy enough to live past teh reverse mortgage's term.

A typical reverse mortgage will have a 30 year term. (You take out the mortgage, and for thirty years you receive payments. from the mortgage company.) In the unlikely event you live for the full 30 years of the reverse mortgage, the mortgage company will have completely paid for the property. The homeowner then has two options. First, the owner can repay the amounts owed on the reverse mortage. Second, the owner can turn the property over to the lender.

It is rare, but it happens.