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Audrey Said:

OK. I've read just about everything there is to read about reverse mortgage...?

We Answered:

The answer is: ANY mortgage lender. I have no idea what this counselor is you refer to. The process is actually quite easy, you do all the things you would do to qualify for a mortgage on your house, but instead of borrowing from the lender, you borrow money against the equity in your house. Since the equity is more or less a guaranteed amount of money, you do not need a job or even have good credit. In essence, you are selling your home equity to the mortgage holder in increments. For each dollar they give to you, your mortgage balance increases. You are charged interest on the balance owed just as with ANY other mortgage. A reverse mortgage would be like my mortgage lender sending me money, and adding the amount to my existing mortgage balance instead of me making a payment that is applied to principle and interest. A reverse mortgage is NOT a good idea from a financial perspective. All you are doing is placing yourself back into MORE debt and are being charged interest for the convenience of drawing on your equity. This is nothing more than a glorified debit card and just as costly to your pocket. You would be much better off selling your house and downsizing to lower cost accommodation than reverse mortgage your property.

Rodney Said:

I'm thinking of doing a "reverse mortgage". Pro's and Con's anyone??

We Answered:

i think it is a great way for seniors to have extra sure income monthly to cover the nice things that they deserve in the senior years == heck with the children -- they were raise let them fend for themselves!!!

Darrell Said:

Pro`s and Con`s of Reverse Mortgage for Senior`s- State of Ok?

We Answered:

There is plenty of info online, including the HUD website referenced below. A Yahoo or Google search will let you see the lenders etc. I am pretty sure that it will effect Medicare payments because Medicare is the senior lien holder on a house when someone goes into a nursing home.

Jason Said:

I need some info on Homeowner Programs?

We Answered:

A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower no longer uses the home as the principal residence. FHA's reverse mortgage provides these benefits, and it is federally-insured as well.

To be eligible for a FHA reverse mortgage, FHA requires that you (the borrower) be a homeowner, 62 years of age or older; own your home outright, or have a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and live in the home. You also must receive consumer information from a HUD-approved counseling agency before obtaining the loan. You can contact the Housing Counseling Clearinghouse on (800) 569-4287 to get the name and telephone number of an approved counseling agency and a list of FHA approved lenders within your area.

Wayne Said:

Opinions on Reverse Mortgages?

We Answered:

in most cases it is a great deal == but the way i read it she has only 33k clear in her home -- it might not be worth it -- but your best bet is go to a bank that handles reverse mortgages and get there opinions!!!

Becky Said:

What are the pro's and con's of a reverse mortgage?

We Answered:

Well, hope you are sitting down......

First, ALL borrowers (usually the husband and wife - ALL parties on title) must be 62 or older. If the parents put the son (Johnny) on title, they need to have him removed in order to do the reverse mortgage.

A reverse mortgage offers EQUITY in the home to the borrowers (primary residence ONLY) The borrowers are able to take this equity in any increments they desire - a one time lump sum, monthly payments (like an annuity) or a split combination of both.

Pros - it keeps mom and dad in the home, it offers equity to the borrowers in the form of CASH today and does not require ANY form of repayment, until after the last occupant passes away or vacates the property as their primary residence. It can improve quality of life for some people or afford better assisted living while they live in their home, pay for medical treatments...whatever. Finally, it is a federal program and is cookie cutter - meaning Broker A and Bank A sell the same product with the same calculations and fees.

Cons - the calculation used to come up with a figure is based on the area the home is in, youngest age of occupant, value of home and mortgage balance that may exist on the home. Generally speaking the young the occupants the lower the equity - because the banks are looking at NO REPAYMENT of interest at all during the 'living' period. The older the occupants the higher percentage of value will be granted. The fees to do such a loan are HIGHER than a refinance. Parents often think they are squandering away their legacy that they wanted to pass on to their children.

A reverse mortgage is a GREAT solution for older borrowers, in poor health and not so much cash assets.

If the borrowers are younger, closer to 62, they should look at selling and down sizing.

If the borrowers are going to move forward with a reverse mortgage , the government REQUIRES ALL borrowers to attend a third party counseling program to inform them of the pros and cons as well. I have seen family members accompany the borrowers too - it is informative and generally when people are considering this option, kids or others are involved in the decision making process.

I have been certified to offer reverse mortgages - this is NOT a solicitation just stating I am certified to share information about the subject.

Hope this help, good luck