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Phyllis Said:

Can you give me some advice on Reverse Mortgage. Are they Good or Bad?

We Answered:

Reverse mortgage is good for older folks of they

- wish to stay in their home
- can't afford to make the mortgage, or need cash to cover expenses.
- don't have any other liquid assets.

It allows you the opportunity to stay in your home, if you acnnot afford to sell and move. Downside is you give up your home when you die, so there is not anything to leave your children if you have them.

Also, the amount you can get is dependent upon your age and health. If you are younger with a long lifespan, they will not allow much out. It is like life insurance in reverse.

Betty Said:

has anyone done a reverse mortgage..any advice or simple explanation.appreciated?

We Answered:

Basically the bank gives you the equity you have in your home in monthly installments. Once they have bought it all they own the house. Most will allow you to remain in the house after this point, as long as you start repaying the loan after you have received the full amount agreed to.

Ramona Said:

I wanted to know if anyone could give me advice on reverse mortgages? Thanks?

We Answered:

Reverse mortgages are a tool for senior citizens to get cash out of their house or to pay off debt, with the guarantee of no payments for as long as they live in the home. The bank does NOT take title to the house. The lender merely is repaid what they lent to the borrower, principal plus interest. That amount RARELY approaches the value of the home. Ask a competent lender for an amortization table to see what the loan balance will be in the future for your circumstances.

The bottom line is, if you're over 62 need money and qualify for the reverse mortgage, then do it. If you don't need it, then don't do it. It's not 'dangerous' or 'complicated', it just has tradeoffs. That being you will have less equity in the future than if you did not do it. So what? You can't take it with you when you die. So you may as well use some of it now. Typically, you'll leave tens or hundreds of thousands for your heirs. Again, get an amortization table to see how much and decide if the tradeoff is worth it to you.