Thinking About A Reverse Mortgage? (Category: Financial Security)
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June 13, 2008 |
12:33 PM
Alexis Leondis of Bloomberg reports that a growing number of seniors are using reverse mortgages to pay for things they might never be able to afford on their own. Leondis describes reverse mortgages this way:
Reverse mortgages are for people aged at least 62. The loans, which lenders charge fees equal to as much as 6 percent of a home's value, allow borrowers to use their home equity to get cash tax free. After the borrowers die, or move, the lenders are repaid when the house is sold.
Like every other personal financial decision, the question of whether or not a taking out reverse mortgage is the right decision is a deeply personal and circumstantial one. The AARP Foundation’s Reverse Mortgage Education Project has many tools folks can use to find out if a reverse mortgage is appropriate to their particular circumstance.
Comments
Steve McKinney says:
Best companies dealing with reverse mortgages? My dad is 83 and has a loan of 180,000 and the house is worth 300,000. Any helpful advice?
We have already inquired from Sun American ...something like that?
Thanks...
Mr. McKinney
09/01/08 6:57 PM
Reverse Mortgage Mom says:
Even though the fees may be higher for a reverse mortgage loan, I still think that this is an excellent method available to seniors to boost their available money for retirement. If you are in California particularly, I would advise that you look into the Senior Lenders free information board. In addition to talking with a counselor, this broker helped me throughout the whole process to understand exactly the fees to be paid, and my obligations such as taxes and upkeep on the home, which will still be required. I surely hope that any seniors looking into this remember that the reverse mortgage option is a real boon, and can be an option that makes an enormous difference in the lifestyle that we live in our golden years. God bless you all, Helen.
09/03/08 8:03 AM