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reverse mortgages for seniors
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Reverse Mortgages: Making an Educated Decision ~ Seniors speak out on what a reverse mortgage has meant for them. “You’ll hear from real seniors and you’ll learn the facts you need to make a smart decision about whether a revese mortgage is right for you.” – James Garner… |
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Reverse Mortgage: The Smart Solution, Educational DVD Reverse Mortgage: The Smart Solution, Educational DVD… |
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THE REVERSE MORTGAGE,AN AMERICAN DREAM PROGRAM FOR SENIOR CITIZENS $9.95 THE REVERSE MORTGAGEAn American Dream program for Senior CitizensREFINANCE or PURCHASE for 2010By Sheldon B VoronA MORTGAGE LOAN FOR LIFE WITH NO PAYMENTS,THAT DOES NOT HAVE TO BE PAID BACK UNTILYOU NO LONGER OCCUPY THE HOMEPURCHASE OF NEW, EXISTING HOME OR NEW CONSTRUCTIONONE TO FOUR FAMILY UNITSOVER 100 QUESTIONS AND ANSWERSOVER 50 PAGES OF INFORMATIONNO MORTGAGE PAYMENTS, EVERFINANCIAL INDEPEND… |
Can someone give a good explanation of how reverse mortgages work?
I know they’re only for senior citizens, and they need to be against only a permanent home that’s already paid off, but I don’t know anything else about them. I’ve heard some say that they are the worst possible deal in the world, yet the commercials make them sound good. What actually are all the “gotchas” and dangers of these?
Judy’s explanation was pretty good. You have to own most of your house and be a certain number of years old.
A traditional mortgage you borrow a large sum and then slowly pay it back with principal and interest. In a reverse mortgage you slowly borrow the money (in the form of the monthly payments) and have to pay off the principal and the interest all at the end. If you are receiving payments of $500 a month, at the end of year 1 you’d owe $6000 in principal plus the interest that accrued. At the end of year 2, you’d owe $12000 in principal plus the interest. The longer you get payments, the more and more interest is added to the original loan balance.
Many reverse mortgages will pay you per month for as long as you are in the home – and that’s the real catch. At some point your borrowed money and interest will be equal to the home’s value. You’d have to sell the house and you’d get nothing when you sold. If you last a really long time (and still live in the house) you might get more money (in the monthly payments) than the house will sell for, but that is a risk the bank takes by charging you a relatively high interest rate. The worst thing that could happen is having to go to a nursing home 5-10 years after taking out the mortgage. In that case you have been much better off selling the home outright and living on the money.
In any case, when the house is sold the mortgage has to be paid off.
I think the big ‘gotcha’ is the invisible interest rate and the fact that the mortgage has to be paid off when the house is sold.
good luck!
California Reverse Mortgage Information for Seniors
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Reverse Mortgages: Making an Educated Decision ~ Seniors speak out on what a reverse mortgage has meant for them. “You’ll hear from real seniors and you’ll learn the facts you need to make a smart decision about whether a revese mortgage is right for you.” – James Garner… |
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Reverse Mortgage: The Smart Solution, Educational DVD Reverse Mortgage: The Smart Solution, Educational DVD… |
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THE REVERSE MORTGAGE,AN AMERICAN DREAM PROGRAM FOR SENIOR CITIZENS $9.95 THE REVERSE MORTGAGEAn American Dream program for Senior CitizensREFINANCE or PURCHASE for 2010By Sheldon B VoronA MORTGAGE LOAN FOR LIFE WITH NO PAYMENTS,THAT DOES NOT HAVE TO BE PAID BACK UNTILYOU NO LONGER OCCUPY THE HOMEPURCHASE OF NEW, EXISTING HOME OR NEW CONSTRUCTIONONE TO FOUR FAMILY UNITSOVER 100 QUESTIONS AND ANSWERSOVER 50 PAGES OF INFORMATIONNO MORTGAGE PAYMENTS, EVERFINANCIAL INDEPEND… |
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The Reverse Mortgage Handbook: A Consumer’s Guide for Senior Homeowners $12.95 Reverse Mortgages – Are They Right for You? THE REVERSE MORTGAGE HANDBOOK provides detailed information and examples to assist in a comprehensive understanding of three popular reverse mortgage products: – HUD’s Home Equity Conversion Mortgage (HECM), – Fannie Mae’s Home Keeper Mortgage, and – Financial Freedom’s Cash Account. THE REVERSE MORTGAGE HANDBOOK explains the terminolog… |
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Reverse Mortgages For Senior Homeowners $12.15 … |