What would be the advantages and disadvantages of a reverse mortgage.?
– allows equity in home to be converted to cash flow by borrowing with no monthly repayment (repayment due at maturity … Presumably by liquidating the collateral) or with interest only payments
– this can be a useful mechanism, particularly for older ‘property rich/cash poor’ persons to augment their cash flow … However …
– at some point, the equity in the collateral property is fully borrowed and a large balance is owed against it (ie borrower has little or no remaining equity in the property)
– in the case of an older borrower, this means a smaller estate to pass along and the risk of outliving the cash flows from the reverse mortgage … Which translates to no house, no more borrowing capability, no more cash flow, no more,no more, no more
Is the NewDay Reverse Mortgage loan a scam?
My grandma received a letter from this company in the mail the other day and it talks about her being pre-approved for a lump sum payment, and I really don’t believe them but they even say they are a government insured program.
Junk mail. Never do business with anyone that calls you or sends you mail.
These will always be the worst companies to deal with.
Reverse mortgages are common, but a much better idea is to sell the home he is in and buy a smaller place or even rent something he can easily afford.
Reverse mortgages are one of the worse financial decisions a person can make.
The charges and fees will eat him up alive.
does anyone have any information on a reverse mortgage?
Is it a good deal? what are the advantages and disadvantages?
NO, it is a bad deal. You are pretty much giving your house away and you could end up with no assets and many more years to support yourself.
To Seniors who have engaged in a Reverse Mortgage with a bank (not with a broker) -?
have you had any negative experience, especially at closing it out? Mine is new, but I am not totally comfortable with the possible outcome at payoff.
One woman I know at age 84 did one. Lender required home improvements, with their contractor. Contractor charged $45,000.00, taken out of the reverse mortgage. The only work done was replacement of five 4’8′ ‘posts’ on her front porch, and painted, and three wooden grab bars were installed at her three doors. That’s a $44,000.00 rip off.
Is reverse mortgage just a selfish way banks steal your inheritance?
They can’t steal your inheritance, they can only lend money on property owned by the person who wishes to borrow it. If the property belongs to you they would not be able to do that. You are not entitled to anything of your parents, they are entitled to use their assets as they see fit.
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