Is a Reverse Mortgage a safe loan?
Posted in Renting & Real Estate on 01/29/2010 12:22 am by admin
MrStevens asked:
My neighbor told me about these reverse mortgage loans and I wanted to ask here if this a safe way to get some cash out of my home. I live in Ft. Lauderdale, Fl. and am retired 6 years now.
JEROME
My neighbor told me about these reverse mortgage loans and I wanted to ask here if this a safe way to get some cash out of my home. I live in Ft. Lauderdale, Fl. and am retired 6 years now.
JEROME
01/29/2010 at 2:47 am
LOGAN
A reverse mortgage is a really great thing if you have lots of equity in your home, and you don’t have very much liquidated cash to enjoy your retirement. My mother had a house paid in full in Santa Barbara, CA but was living off of social security checks. I helped her get a reverse mortgage loan from Financial Freedom. Then she was living life to the fullest until she passed away 6 years later. My siblings were livid when they found out she got that loan, because they thought she would eat up their inheritance. But she sure loved life those last years of her life, going to the off-track horse racing, bought a new car, new hi-def tv, remodeled her kitchen with Viking appliances. So, yes it can be a very good thing. But you must remember that it is basically selling your house slowly back to a financial institution. If my mom would have lived long enough, my brother and sister (and me) would not have inherited a dime, but that was ok with me.
Anyways, you can find some info and resources about reverse mortgages here:
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02/01/2010 at 10:30 am
LUIS
Not really. Your property starts loosing equity…
02/01/2010 at 2:31 pm
ELMO
I am not well versed in reverse mortgages, but I have to agree with chargers answer. A reverse mortgage basically has the bank pay you for your home, the catch is that once the mortgage has run it’s course, the bank owns it, so if you intent to leave the residence to someone, they will be greatly suprised. But, if you need some money to reward yourself for you work years, I would certainly discuss it with a mortgage professional, best of luck
02/04/2010 at 11:24 am
ISAAC
A reverse mortgage is definitely safe. You decide how much cash you want out of your home and only you hold the title to your home.
Just be sure to examine your options. There are a couple different kinds of reverse mortgages -or- a cash-out refinance might accomplish your goals.