Best source for reverse mortgages

best source for reverse mortgages

Terry Says:  There are literally hundreds of reverse mortgage lenders.  So let me take you to the starting place to learn all about these products, which I have heartily endorsed — IF you meet the qualifications and the need.   Go to www.reversemortgage.org to learn all about how these plans work, and to search for a nearby lender.

Reverse mortgages can be a lifesaver for an older couple or individual (age 62 or older) who want to stay in their own home, and plan to do so for at least 10 years.  You get a monthly (or lump sum) of tax-free cash from your home.  In effect, you are reversing the flow of money you put into your home over the years to build equity.  The amount of cash you can get depends on the value of your home, your age (ie life expectancy) and on interest rates.  There is a calculator at www.reversemortgage.org so you can get an idea.

You can get the monthly check as long as you stay in your home — no matter how long you live or how much money you have taken out of your home.  (I did an RM for my father years ago, and he is still in his Florida condo at age 93!  By now he has borrowed out more than the condo will ever be worth!)   If he were to move out, or die, the bank lender gets the condo (ok with me) and the bank cannot demand any more money from his heirs, despite the fact that the condo is worth far less than the outstanding debt, including interest!

There are costs associated with this RM — costs taken out of the monthly payment.  That’s why you only want to do this deal if you are planning to stay in your home for a long time.  Otherwise, you might just want to sell the home outright and move into a senior complex or a rental.  After all, even with a RM, you are still responsible for property taxes, insurance, and upkeep.

The DANGER is simply that many scam artists go around telling seniors to take money out through this process, then sell them unnecessary furnace repairs or other ripoffs!  So you should never be “talked into” a RM;  in fact, independent counseling is required.

But don’t rule out this excellent alternative to create liquidity while  you stay in your own home.