Your Questions About Reverse Mortgage

Ken asks…

Reverse Mortgage or second home loan?

I need to replace the roof, lawn sprinklers and other around the home issues. Which one are better and who to contack. FYI: I racing against the clock here.

admin answers:

How old are you? How much equity do you have in your home?

Those would be facts that you would need to make your decision, we can’t answer it based on what you want to spend the money on.

Paul asks…

Are there any circumstances that would help qualify a 55 yr old man on disability for a reverse mortgage loan?

The house is completely paid for. He’s not yet receiving social security although the application is being processed. Chronologically he’s 55, but the doctors have put his physical age closer to 70 due to the many, many health and mental conditions.

admin answers:

I’m sorry but FHA/HUD is very strict on the 62 age requirement. As someone else mentioned you may look into a home equity line of credit as an alternative. When he’s 62 you can then do a reverse mortgage and pay off the HELOC.

Feel free to contact me if you have any other questions.

Helen asks…

i have a reverse mortgage without a clear title?

the figures that i was given was not the figures that was used for the reverse mortgage which opted me to have no money at the time of closing which i think was deceptive

admin answers:

This is not unusual, especially with internet lenders. You have to talk to the loan officer or mortgage broker who prepared the loan documents.

Ruth asks…

What happens in a reverse mortgage and all the money is spent but the elderly people are still alive?

The amount of the loan is $200,000.00. The house was valued at $490,000.00.

admin answers:

Nothing happens

with a reverse mortgage the homeowner can stay in the house until they die and never have to make a payment.

If they are getting a monthly income from the reverse mortgage they also have to recieve it until they die or move out.

Reverse mortgages are designed so they can’t hurt the senior

Lizzie asks…

Exactly how does a reverse mortgage work?

admin answers:

Basically you take out a loan against the value of your home. The bank gives you cash in return for a payment that they expect when the owner dies, sells the house or vacates the home.

Unlike a traditional mortgage, the home owner makes no monthly payments. All the interest on the amount the bank lends you is added to the lien on the property and it’s all paid out upon those events I mentioned.

These used to be marketed to older people who need immediate funds to live on, but don’t want to retain the equity in their homes for their estates or future generations. Thing is, they are under some scrutiny for marketing and pricing practices. Make sure you do some research and understand fully the consequences…

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