how does it work?
Homeowners who own their homes outright may in certain states cash in on their equity by taking a reverse mortgage. Typically, 80% of the value of the home is paid by a bank to a homeowner in a lump sum or in installments. Principal is due when the home is sold or when the homeowner dies; interest is added to the loan and is payable when the principal is paid. The IRS has ruled that an interest deduction may be claimed by a cash-basis homeowner only when the interest is paid, not when the interest is added to the outstanding loan balance.
This is a good idea for a older home owner over 65 who plans on living in the house until the end of their days. It’s nice because a lot of older people are on a very tight budget especially with the cost of medical bills and prescriptions and this allows you to pull the equity out of your home and you don’t have to make any payments until the house is sold.
Where can i get reverse mortgage training in California?
I plan on going back to work at the end of Summer. I have been staying home with the kids and I’m re-entering the workforce. I have banking and Mortgage lending experience.
I’m in Northern California.
I believe there are several good banks that offer classes in reverse mortgages in Sacramento. A reverse can be a very smart thing to do and all the major banks offer them. Go with a reputable bank and not some guy knocking on your door. Enjoy your money, don’t sit on it until you die and give it to your kids. Let your kids earn their own money! 😉
Reverse mortgage or Equity loan?What is the best, least confusing and fastest way to sell a senior’s home?
My grandma is near 80 and my granfather is mentally gone.She doesnt want to be in the house when people are viewing her home.So, I think the best way is for her to see the home she wants to buy, get a mortgage for it, move and THEN sell her home. It is just my dad an I helping her.Any advice?
Yes, grandma wants to sell her home and move to either a senior community or a new home all together.
Her house is paid for.
Yes, there are many opportunities for elders to get taken advantage of in reverse mortgages, so consult a real estate attorney and/or advisor before doing any reverse mortgage.
The most common practice when buying a home is to make an offer on the home you want to buy ‘contingent’ on the home you own selling first. That means you’re not stuck with the financial responsibility for two homes. That does however mean you have to have folks coming into your home to look at it while your grandparents are still living there. So it might not be possible for your grandmother to get your grandfather out of the house on a moments notice when a real estate agent wants to show the house. If your grandparents are financially capable of buying one house, and then selling theirs, that might be best in your situation. Make sure there is no penalty for early payoff of the mortgage, if they intend to pay off the new mortgage with the proceeds from the sale of their home. Some reputable builders offer something called a home trade program, where they will buy your home when you buy theirs. Most will pay close to fair market value. At least 90% of FMV is usually fair to allow them to pay expenses, etc.
Best advise, get a professional realtor to walk you through it.
Feelings on senior equity reverse mortgage?
I am at the age that I can use Senior Equity Reverse Mortgage. I would like to hear from some of you who have taken advantage of this and how it is working for you….
I think it is the best thing since slice bread!!!
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