I’ve seen commercials for reverse mortgages and I’ve called a few but some don’t want to finance a home appraised for less than $50k and I also here so many negative comments. I want to keep my home but it needs some repairs and I want reverse mortgage to pay off a mortgage and make repairs. I am over 65 and retired. How can I find a company that will assist me?
Terry Says: OK, let me say that I am in favor of Reverse Mortgages under the following circumstances: first, you plan to remain in the home for at least five years, and second, you think you can afford to pay property taxes (which may increase) and insurance on the home, and that third, you can live there and also afford help if you need assistance in basic activities.
In other words, home is a great place — but if all the proceeds of a reverse mortgage are going to repairs and paying down your mortgage, you have to do a financial plan figuring out if you can still cover costs of taxes and utilities over the coming years. If not, you would want to sell the property and get into some kind of senior living community.
To search for reverse mortgage lenders who may be able to help you, go to www.ReverseMortgage.org.