Question about reverse mortgage……?
I’m trying to find out some helpful information for my parents. They are considering a reverse mortgage, but so far my Mom has only spoke with one lender……We live in SC, and the last time they had their house appraised it was for $91,500. or somewhere around that amount…..The lady she spoke to on the phone today told her that if her house is appraised at only 91500 she will only get around $60,000. and that is before the closing cost and other fees, which all that added up to be around $14,000. Does this sound right? We were thinking that she should be able to get more than that…..If anyone has any experience in this, any advice would be appreciated. I’ve found a list on the Gov. website for hud approved reverse mortgage lenders…..Maybe she should call around for the best deal? Thanks guys and I hope everyone had a blessed Christmas!
oh yea, and if it helps any, my parents don’t have a current mortgage. They owe nothing.
This is actually pretty good, they usually go to about 60% of the value.
There will not be ANY of these that will pay your mother a fair market value. They make their profit on the back end, with the equity instead of interest.
If your parents have other options they should go with those, this one is not a good deal, no reverse mortgages are.
I want to know where to get a list of reverse mortgage lender in Minneapolis area with address, name, phone et
Here’s where you want to go…..www.reversemortgage.org . This is the website for the National Reverse Mortgage Lenders Association (NRMLA). You will see on the left side of the page a link to ” Locate a Lender” Click on that, then use the drop down arrow to get your state, and a list of lenders with names and phones will pop up. You will also find some good information there also. For disclosure purposes, I have been in the Reverse Mortgage business for over 2 years and I’m a Reverse Mortgage Consultant for EverBank Reverse Mortgage…a National Bank that only does Reverse Mortgages. If I may suggest you call Larissa Morrell, you will find her to be a fantastic source and will guide you thru the Reverse Mortgage process.
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ron a reverse mortgage can the lender sell the home to a family member for more than an outside non relative?
for a lesser amount after the owners die?
Yes, they can sell the property to anyone they want for whatever offer they decide is the best.
How much does reverse mortgage counseling cost?
I was reading a site called www.reversemortgageabcs.com that talked extensively about the need for reverse mortgage counseling and even where I could find a counselor. However, it did not mention how much it would cost nor did it mention whether I would have to pay for it (or if the lender would) if I decide not to proceed with the reverse mortgage.
The borrower doesn’t pay for it at all. The lender pays. On most, if not all, reverse mortgages, the borrower doesn’t pay anything if the loan doesn’t close. Say your appraisal is too low. You don’t pay any fees.
Look at the AARP website. They have a lot of details there. Bank of America’s website is very good. They have a calculator to give you an idea how much you might be able to get.
With a reverse mortgage if owner stays in house and ends up with excessive equity does lender go after estate?
With a reverse mortgage, If owner stays in house for longer than expected and with interest, etc. ends up “upside down” — in other words, more is owed on the house than it’s current value, (of course, after the death of the owner), and after the bank sells the house can it then come to the estate to make up the difference?
Reverse mortgages are tricky and prone to lots of misinformation. But do not worry in this case. First, the bank doesn’t own the house so they don’t get to sell it. The heirs have a year to refinance or sell.
If the proceeds are not enough to satisfy the loan, the lender (or their insurance on the loan) absorbs the difference. This is a “non recourse rule” which entitles the lender to only the market value of the home and nothing more.
The other assets are safe.
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