Quick idea of reverse mortgage?
I know I need to talk to a bank about this, but trying to get a quick idea about how a reverse mortgage would work for my mother-in-law who wants to sell her 2-story house and buy something manageable. Trying to figure out some way she can afford this.
1) Can you a reverse mortgage on a house where you dont own the land? She wants a pre-fab in a retirement community where you rent the land.
2) About how much could she get monthly for a reverse mortgage on a $100k house. I'm sure it depends on many things. She is 83 and is in good health. Any estimate what so ever? Range?
Thanks for any help!
- Chris CLv 710 years agoFavorite Answer
To get a reverse mortgage, there has to be no debt on the house.
So, no primary mortgage at least. I've heard of a few rare cases where a person had a small secondary mortgage on their residence.
I don't believe you have to own the land, but I could be mistaken.
If the mortgage is free and clear, she could probably get $300-$500/month, that's presuming that the costs of the reverse mortgage are only $10,000.