NLIC.org

Miriam Said:

Attn Webmasters: How can I improve this website - www.reversemortgagepage.com?

We Answered:

hi,
you have a nice looking site. i would definately modify the code of your website to be more search engine friendly. i looked up, that in july the term reverse mortgage was searched for57,226 times. that is a huge market, you should be optimizing your website in such a way that you appear at the top of the search engine results. do you have any data on your site? do you know how long visitors stay and their behavior while on the site? that can be key info as to what is going on. hope this helps, if you would like any further dont hesitate to ask

Pauline Said:

What are the down-falls of a Reverse Mortgage?

We Answered:

Linc,

Reverse mortgages are what I specialize in. Something I'm confused about in what you said. The fees for reverse mortgages are mandated by FHA and are very specific. Now if this company is asking for $300 up front for an appraisal deposit or application fee I understand that it is an out of pocket expense (our company doesn't ask for this). There are other fees that are rolled into the loan. 1) 2% FHA mortgage insurance 2) 2% Origination fee) 3) Typical closing cost i.e. appraisal fee, title work, etc.

I'm sorry but there are many misconceptions out there about reverse mortgages. Many of them are listed by some of these replies.

There really is only one downside to taking out a reverse mortgage. The children are not left with 100% of the value of the home for an inheritance. From my experience and my own personal view, most children would want their parents to live their life to the fullest and don't care if part of their inheritance is reduced. It is YOUR home and you worked hard to pay for it. You should enjoy the benefits of it.

She can not get whatever amount of money she wants she can only qualify to receive around 45%-75% of her home value. With reverse mortgages the older you are the more money you receive. The reason for this is that these lenders have to wait for 10-40 years to get paid back their money on average. Someone who is 62 will be around much longer than someone who is 90 so the because of life expectancy the lender will give more money.

The house is still in your mom's name it just shows that there is a mortgage on the home like any other conventional mortgage. She can take the full amount she qualifies for in a lump sum, split it up in monthly payments or leave it in a line of credit which right now has a growth rate of about 7%. This means if she didn't touch the line of credit in one year it would be 7% higher. With the line of credit she is only charged interest on what she pulls out of the line of credit and that interest rate right now is right around 6.5%. The rest of the money sits there untouched until she needs it. These loans are set up so that there should always be equity in the home to pass along to their heirs.

All of this money is tax free and there are no monthly payments to make. You CAN make a payment if you want and are concerned about keeping the balance down. You even get a tax break if you pay back the interest you are being charged.

This is a much better option than a home equity loan which you have to make high monthly payments and if something happens and they get behind could lose their home.

So really the only downside to reverse mortgages is that someone like you wouldn't get 100% of the home value for your inheritance.

I'd be happy to send you some more information if you would like. This is what I specialize in and our company can do reverses almost anywhere in the country. If you would like some more information please email me at bburns@griffinloans.com

Tammy Said:

Who knows something about a reverse mortgage?

We Answered:

These are very expensive loans.

If your house was paid off and worth $200,000, would you agree to sell it to me for $100,000? No? Then why would you agree to do it if someone called it a reverse mortgage?