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It depends on the borrowers financial and living situations. For many a reverse mortgage can help improve the quality of life for seniors. In other cases, a reverse mortgage isn't needed, or can be held off for several years.
Wiki User
∙ 11y ago
Wiki User
∙ 8y agoDetermining whether or not to take out a reverse mortgage is a huge decision. First, you need to ask yourself why you need the money. With a reverse mortgage, if you fail to pay your property taxes or insurance, you could lose your home. It’s important to fully understand all of the risks associated with reverse mortgages before moving forward.
If, however, you plan on living in your home for the rest of your life and don’t plan on leaving your home to heirs, a reverse mortgage could be worth considering in order to increase your cash flow. With a reverse mortgage, you can receive one lump sum of money or the lender can make monthly payments to you. This could provide a more comfortable lifestyle in your elderly years, but again, it’s important to weigh the risks that come with this type of loan. Make sure to look at all other options, too, such as a home equity loan or simply downsizing your home.
Ultimately, if you do decide a reverse mortgage is in your best interest, make sure to comparison shop different reverse mortgage lenders, so you can get the best rate possible and pay the least amount in fees.
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Is getting a reverse mortgage a good idea?
A reverse mortgage is for older individuals to borrow against their homes. This allows them to not have to sell there home and the bank to make monthly payments to the owner.
What is a reverse mortgage loan, and where can I get one?
A reverse mortgage is a type of (lifetime morage) for people the ages of 62 and over. It allows the homeowner to access a portion of their equity. I was always told it wasent a good idea.
When is mortgage refinancing not a good idea?
Mortgage refinancing is not a good idea when you have had your mortgage for a long period of time.
What reverse mortgage calculator is the best one?
Opinions vary about which reverse mortgage calculator is the best, but a very good one is the AARP Reverse Mortgage Calculator. It provides estimates for two different reverse mortgage programs to tell you how much money you might receive under the plan.
What is a reverse mortgage?
A reverse mortgage is a mortgage that is only available to retirees who are over the age of 62. The idea is that the equity on the mortgage is paid out as a lump sum, effectively removing the long time frame usually associated with mortgage payments.
Do you still have to pay monthly mortgage if you have a reverse mortgage?
No, the purpose of a reverse mortgage mortgage is to eliminate mortgage payments permanently.
What are the features of a reverse mortgage?
You can find the features of a reverse mortgage at www.aarp.org/money/personal/reverse_mortgages/ - . ANother good website is www.reversemortgage.org/Default.aspx?tabid=658
Where is a good place to get online reverse mortgage info?
A good place to search for online reverse mortgage is any place which has a good record, interest rate and is fair towards their clients. Best is to see if the place has a good reputation.
What is a reverse mortgage lead?
A reverse mortgage lead is where you can get names of people that are interested in getting a reverse mortgage. These leads should already have been screened to meet the criteria for a reverse mortgage.
Where can I learn more about reverse mortgage fees?
Reverse Mortage Fees (RMF) are basically mortgage fees, backwards! Instead of the bank paying you money, you have to pay the bank money for mortgage. This can be good and bad.
What are the benefits of a reverse mortgage?
A good thing about reverse mortgage is that it does not have to have any income to qualify. Like the regular mortgage, it doesn't have any monthly loan payments. When your property gets sold, your mortgage will get paid off without any risk.
Can you qualify for a Reverse mortgage with balance owed on original mortgage?
Yes. The reverse mortgage must however pay off the existing mortgage balance, which means you need some equity to make the qualification work. If there is not enough equity in the home to qualify for a reverse mortgage you may choose to bring in the amount needed to finish paying off the existing mortgage- thus eliminating the mortgage payments for good.
