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Lucy Said:

mortgage broker severely misled me and with held info that i was entering into a reverse mortgage need help?

We Answered:

The government is looking into reverse mortgage practices and is aware of salesmen that use misleading tactics. Contact an attorney, full disclosure is something the broker is fully aware of and must do everything possible to make certain you understand what you signed.

William Said:

looking for info on reverse mortagages?

We Answered:

A reverse mortgage is a solution for someone that needs additional income and has equity in their house. Here is a good guide on reverse mortgages: http://www.regionalmortgages.com/reverse…

Jimmy Said:

Anyone know anything about reverse mortgage?

We Answered:

Reverse Mortgages are a good option for some, not all.

There is a formula that calculates their age & value of the house to determine what $ amount they could get.
You can only have a small loan on the house or paid off.
They require a minimum standard for the condition so repairs may have to be made if needed.

They can be fee heavy and there maybe better options.

Here is a Q&A

http://www.aimwithfocus.com/Reverse_Mort…

Good Luck

OBA

Dorothy Said:

Do you have any info on "reverse mortgages"? Where can I learn more?

We Answered:

Reverse mortgages can be great for seniors who have a limited income but have lots of equity in their home. Basically they can stay in the home without paying the mortgage (still have to pay property tax and insurance) until they move or die.

The downside is that the loan balance grows as time goes on and you could end up with nothing to pass down to your heirs. But if you're struggling to pay the bills it may be worth looking into. Just do plenty of research before jumping in.

Marshall Said:

How does a reverse mortgage work?

We Answered:

...here's a very very "simplistic" answer... You currently own the home... "they" give you all the "equity" back for you to use anyway you want... a BIG cash payout... "dribs and drabs" and you don't have to pay it back...ever... however, (here comes the nightmare)... you can't "will" the house to your relatives...when you die the house and property go to the "mortgage co" with a "first refusal" offer to your relatives to pay back the "equity" that you've spent or establish a new mortgage and buy it back or...color it gone...(they keep t and re-sell it).

Peggy Said:

Does anyone know how a "REVERSE MORTGAGE works?

We Answered:

First of all, you have to meet a certain age limit to be qualified for a reverse mortgage. Depending on the program or lender would determine the age limit, however I do believe it starts at retirement age.

Secondly, the lender will only payout to a certain percentage of the value of the home. Again, this depends on the lender and the program. Most will perform to 50% of the value of the home. I have seen some as low as 40% with some being as high as 60%.

Third, the monthly income would determine the life expectancy of the individual. If the person is 66 years of age with a life expediency of 85, then there is 19 years that they will receive payment (as long as they do not exceed the value threshold).

So the example would be this:
Example 1
500,000 value owned free and clear
250,000 dollars allowed to be drawn on
1,094.49 dollars in income(19yrx12m=228m/250,000 dollars)

Example 2
500,000 value w/ 100K lien
150,000 dollars allowed to be drawn on (100K-250K (50%))
657.89 dollars in income (same formula as above).

Each time a payment is conducted, you will incur interest on that payment that will be compounded monthly. Hence the reason for the low LTV (loan to value) ratio.

Once the borrower passes away, you will have a certain amount of time to repay the lender back. In most cases it will be 90 days once it has gone through probate. Repaying back the loan with in 90 days either through selling the property or refinancing the property if you decide to retain the property.

Another item that you will want to consider will be the closing cost of the reverse mortgage. Closing costs are typically much higher than your traditional mortgages. In some cases it might be double to triple the normal cost. Again, that depends on the lender that you work with.

I have worked with a few people that where looking into the reverse mortgage program, that ultimately decided to finance using another program that is not a reverse mortgage. Ultimately it coomes down to cash control. You need to find a program that allowes the freedom of cash control to obtain your goals (traveling and enjoying the remaining years of your life). However, you do have a lot of home work to do in researching your options.

Contact me directly if you have any questions. Hope this helps...