Anyone know anything about reverse mortgage?

My in-laws are getting on in years. 75 and 73. They are struggeling to keep the house and pay bills. I've see the commercials for reverse mortgage, sounds good to me but they would make is sound good in a commercial. Can you tell me if this is a good thing? As long as they get money to live on while they are still alive, that's fine. We don't care if we inherit the house and such. Any info would be appreciated. Thanks.

8 Answers

Relevance
  • Anonymous
    1 decade ago
    Best Answer

    Reverse Mortgages are a good option for some, not all.

    There is a formula that calculates their age & value of the house to determine what $ amount they could get.

    You can only have a small loan on the house or paid off.

    They require a minimum standard for the condition so repairs may have to be made if needed.

    They can be fee heavy and there maybe better options.

    Here is a Q&A

    http://www.aimwithfocus.com/Reverse_Mortgage.html

    Good Luck

    OBA

    Source(s): Mortgage Broker | OBA Certified
  • 1 decade ago

    There are a number of sources to turn to for answers on this question. Search the web for complete information, but...

    I think a reverse mortgage can be a good thing. Having been in the mortgage/finance/investment world for the last 15 years, it isnt necessarily bad, as long as you keep a few things in mind...

    In order to do a reverse mortgage, there has to be equity in the property. Typically 30% and better. A reverse mortgage will lend people money for whatever they want, and when they die or move out of the house, the house gets sold, and the bank gets paid first.

    My own parents will be approaching this in the next 5 years or so, and i expect that we will do this for them as well. So during this process the owners get to live rent free in the house, kinda. The mortgage that has been taken out, continues to accrue interest. So it is not free, and the owners are still responsible for the taxes and insurance payments on the property as well as all the typical bills. So it isnt getting rid of all the bills, but can make living in their home so much more comfortable financially...

  • 1 decade ago

    Is a reverse mortgage good? It depends on their situation. After they pass away, the house will go to the bank. I would speak to a Real Estate Attorney for advise, they would also need to amend their wills.

  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    1 decade ago

    Reverse mortgages are fine if you understand all the implications. I suggest you consult with a financial advisor or tax attorney. Make sure their wills are up to date.

  • ?
    Lv 4
    3 years ago

    I recommend a real sources criminal expert be consulted as to how the little ones could purchase the farm as contracts would be required to guarantee the little ones of coming up money. i'm a splash surprised that the little ones are no longer helping out their mothers and dads understanding that as quickly as their mothers and dads previous away, the farm would be theirs besides, assuming that the mothers and dads are making plans on leaving the farm to the little ones. Many criminal questions opt for solutions and a criminal expert will truthfully be necessary.

  • Anonymous
    1 decade ago

    In the UK we tend to call this kind of arrangement an equity release scheme. Company's like http://www.a-quick-sale.co.uk offer services like this.

    There certainly are negative aspects to equity release but if you're parents want to stay in their home yet are struggling for money and have equity in their home it may be worth considering.

  • Anonymous
    1 decade ago

    Reverse mortgages are great, i would put my own grandparents in them. read more about reverse mortgages, http://www.choicefinance.net/reverse-mortgage.htm

Still have questions? Get your answers by asking now.