Reverse mortgages. good or bad ?
Answer:
The reverse mortgage is both good and bad. Make sure it is the right decision for you. There are a lot of options.
Reverse mortgage comes with huge hidden interest costs. Just like home equity loan or line of credit, this should only be use as your last resort for your retirement income.
In ideal situations, they're bad. You're basically trading the home you worked so hard to own for income until you die, leaving nothing when you're gone. If you have children or other heirs you'd like to leave something to, this will take your home away from them -- and in most cases you do NOT get as much out of your home as you have equity in it (think about it -- reverse motgage companies wouldn't make the deal if they were going to lose money.).
That said, if you haven't saved enough to live comfortably during your retirement, then a reverse mortgage can work for you. As long as you know what you're getting in to, and that you will lose your home when the mortgage is up (usually when you die). If you need the income, it's certainly better than borrowing it, and in some cases it's better than selling your home outright and moving someplace smaller or more affordable (which is also an option you should consider -- if you have more than a couple hundred thousand in equity in your house, selling it and investing that money in a high-interest paying mutual fund will almost certainly give you more money than a reverse mortgage will).
good luck with your choices.
I think Wells Fargo offers them.
It's better than not having any income.
Just watch out for fees and read the fine print. You might also see if your heirs would be interested in buying your home from you.
Good, shop around for best deal, lowest monthly service charge and financed origination fee all else is government regulated, I took the lowest and gave the others a chance to beat it, which " Stay at Home" did. I say good for two reasons 1. You get to enjow your equity while your alive, can also help in home care expenses. 2. May also facilitate early pay off due to lowest interest. you don't lose you house as some believe for inheritance. On the amortization schedules provided by both lender and counceling service I found a $2500 error on the one from the counceling service one resulting in the 0 equity
Reverse mortgages only make sense for retired people who need to free up cash to pay bills they otherwise couldn't afford. Other than that, you are only decreasing the equity in your home little by little. You should go on aarp.com and research them before making that decision.
Topcat,
I have seen reverse mortgages help many people. No they are not right for everyone over the age of 62 but if you are in need of extra money they could possibly help you. There are many misconceptions out there about reverse mortgages that stem from private parities in the past. Today with FHA insured reverse mortgages they are a very safe way for you to receive extra money and making sure you have something to pass down to your heirs. If you are debating between a reverse mortgage and a home equity loan, reverses are the way to go. The reason is with a home equity loan you have to make payments back on what you borrow. If you miss a few payments then there is a chance that the bank will foreclose on your home. With a reverse mortgage you CAN make a payment back if you are worried about the principal balance going up but you do NOT have to make a payment back. It's really the best of both worlds. If you need the money then I suggest getting a reverse mortgage. With a reverse mortgage you can receive your money in a lump sum, monthly payments, or a line of credit which currently grows at about 7%! I would be glad to send you some more information. This is all I specialize in and about 50% of my clients are referrals from past clients.
Several facts about the reverse mortgage are:
•You will still be the only titleholder on your home
•You never pay anything out of pocket for the reverse mortgage
•It is insured through FHA
•You can live in your home for the rest of your life
•You leave your home to your heirs, not to a bank, when you pass away.
Our company specializes in reverse mortgages and we have been the largest originator of reverse mortgages in the Southwest for the past 3 years. Really the biggest difference between us and everyone else is that we do not ask for any money up front unlike Wells Fargo. Some people consider the fees a little high but the reason you see all the fees that you are paying is so we can give you the absolute lowest interest rate on your loan. When you see a loan with no closing costs, all those fees still have to be paid, they are just paid with charging you a higher interest rate.
If you would like you can email me and I can give you a quote on how much you can receive. You can email me at bburns@griffinloans.com.
Well!..if you have enough equity to give away, then is OK!, but a normal mortgage, at low interest rates will be much better!!.
You can compare reverse mortgage lenders at http://www.reversemortgagepage.
Not good.
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