Reverse mortgage as a borrowing option
11-18-2013, 09:14 AM
#12
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Join Date: Dec 2009
Location: Outside St. Louis
Posts: 38,213
You can't believe what a commercial says, even from movie stars. They are just paid to say whatever the RM people tell them to say. How many times have you bought a product that was advertised on TV and found it did not perform as advertised? I have read horror stories about people losing their homes due to RM. I would not use them.
11-18-2013, 12:43 PM
#13
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Join Date: Aug 2011
Posts: 128
I think reverse mortgage you own your home but can't sell it unless you pay back the payments plus a lot more. It's big financial decision. The house goes to the lender if you have to move due to health or older age. I would get a lawyer that specializes in that before taking the word of a lender. I would borrow on a low interest credit card before taking out an equity loan.
11-18-2013, 12:45 PM
#14
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Join Date: Aug 2011
Posts: 128
On one of the investment shows they told that a reverse mortgage is not a loan for short term. In other words if you need money for kitchens it should not be a RM. A RM has a lot of up front costs ( thousands) to even get started, and it keeps increasing as time goes by. Go to a bank or credit union and talk to them about a home improvement loan, or line of credit. They would be better than a RM. This is just my opinion.
11-18-2013, 12:46 PM
#15
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Join Date: Aug 2011
Posts: 128
Please do NOT do a reverse mortgage. My sister did this and she now cannot afford to get herself out of the situation. She owes more, much more, than she originally borrowed. It sounds great but remember that they are charging you interest on the money you get and at the rate that her's has gone up, she will never get out of it. I love the way they tell you, you still own the house. Yes, but only if you can pay them back. Do your research. If you can swing a home equity loan, you will be better off.
11-18-2013, 12:47 PM
#16
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Posts: 128
What were his objections to them?
11-19-2013, 06:15 AM
#19
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Join Date: Dec 2010
Location: high desert of AZ
Posts: 591
Heard a story where the lady's name was not on the house. They had a specific reason for doing that, but don't remember why. When he died, she had to move out within a few months. I would not recommend reverse mtg.
11-19-2013, 06:26 AM
#20
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Join Date: Oct 2009
Posts: 682
It is also going to be a problem for the house finance people, when they have to take the house back. I don't like the celebrities who go on TV and advertise for them. They are all seemingly astute people and should look into what the thing does before they endorse it. There are fees for appraisals, title insurance, loan fee,etc. just the same as getting any other mortgage and they add all this up on your reverse mortgage at the time you start getting money. I might look into a complete refinance of the house with borrowing some more money if the appraisal comes in high enough as the rates for those mortgages are the lowest. Second mortages such as home improvement loans come at a much higher interest rate. I used to be in real estate, so much as I try not to, I notice the rates for mortgages.
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