Reverse Mortgage Pros and Cons – Is a Reverse Mortgage Right For You?

Request a Reverse Mortgage Analysis:https://reversemortgage.wufoo.com/forms/qj5tbxt13pat96/

Hi! I’m Deborah Nance and today I’m going to talk about the Pros & Cons of a reverse mortgage.

Which do you want to hear first?……. Okay we’ll go over the cons first… the negatives.

The first negative is the fact that when a persona with a reverse mortgage dies, the heirs will inherit a home with a lien on it. A lien that needs to paid off within 6 months! (Heirs may be able to also get two 90 day extensions to payoff) So, if it is crucially important to you to leave your kids a home that is free and clear. You will want to find another solution besides a reverse mortgage. On the other hand if you feel like you’ve provided for your kids by raising them and teaching them to be independent, honest and hardworking and they do not expect or want you to leave them your home free and clear. Then a reverse mortgage might just work for you.

The second negative is Closing costs! A reverse mortgage has closing costs and they can be more than the closing costs on a traditional mortgage. So… It is very important to compare lenders and get the best rates and fees.

The next negative is that the balance on a reverse mortgage grows over time. You will owe more on the house in 10 years than you do after the first year. The only way to avoid this is to make payments on the reverse mortgage. (yes you can make payments on a reverse if you want to) though most never do.

If you spend all of the money from your reverse mortgage and the balance grows, some day when you are REALLY old, you may become sick and need money. If you have used up all of the funds in your reverse mortgage, what options will you have to get more money? You may be in a position where you have to sell and you won’t recieve as much from the sale of your home had you never done the reverse mortgage.

The pros – The biggest pro of all is the fact that you do not ever have to make mortgage payments on a reverse. You can if you wish, but it is never required. If you used the reverse mortgage to payoff your mortgage, you just increased your cash flow! Just imagine – no more mortgage payments – EVER. This “raise” will free up cash that you can put into savings for future emergencies and may also provide you with additional cash from the reverse mortgage itself in the form of a credit line or monthly payments to you.

The next positive is the Credit Line Growth. A reverse mortgage credit line grows over time! This is a great feature of the reverse mortgage. If you choose the credit line option on a reverse mortgage the lender can not cut off your credit line just because home values fall. In fact the credit line grows over time at a rate equal to the loan rate plus 1.25%. This could be a huge benefit down the road, especially if you refrain from withdrawing funds from the line of credit and just let that credit line grow and grow. Over time you would have access to much more money. If you never have and emergency and do not need to ever take the funds from the line of credit, then you haven’t borrowed those funds and your heirs would have a much lower balance to payoff when they inherit your home.

A reverse mortgage can be a great tool for retirement but it’s not for everyone. If you would like to explore the benefits and possible drawbacks to a reverse mortgage in your life please give me a call or click on the “Request a Reverse Mortgage Analysis” link below and complete the easy form – I will email you a personalized reverse mortgage quote.
The postings and opinions on this site are my own and do not necessarily represent the position of my employer.
Deborah Nance, NMLS#202003 Equal Housing Lender

Thinking of Retirement

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Thinking of Retirement
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Older Man Thinking of Retirement

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Reverse Mortgage Stimulus
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A beautiful home with the USA flag in the background. When using this image please provide photo credit (link) to: reverse.mortgage

Reverse Mortgage Breaking News
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Nice Reverse Mortgage photos

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Reverse Home loan Switch
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< img alt="reverse mortgage"src="https://www.credit-report-online.net/wp-content/uploads/2017/05/24297183562_751e432964.jpg"size="400"/ > Photo by All Reverse Home mortgage This is a photo of a reverse mortgage switch. When utilizing this photo please provide photo credit scores(link)to: reverse.mortgage

The Big Reverse Mortgage Question: Should I Stay Or Should I Sell?

With a reverse mortgage, seniors are able to stay in their homes for as long as they wish without having to sell their home or take on new monthly mortgage payment. Seniors will never under any circumstances resulting from reverse mortgages, be forced to leave their homes providing they make their real estate property tax and insurance payments and keep the home in reasonable condition.

Also, unlike other retirement tools or conventional loans, there is no income qualification with a reverse mortgage. Borrowers are not required to make monthly mortgage payments on a reverse mortgage throughout the life of the loan. The loan becomes repayable when the last borrower on title sells the home or permanently moves out. In addition, the repayments amount will not exceed the fair market value of the home.

Many homeowners become interested in reverse mortgages so they can pay off their existing mortgages, equity loans and high interest credit cards. Selling and moving elsewhere are generally not very appealing to most seniors. In fact, most senior adults prefer to enjoy their retirement in the comfort of their home.

Unfortunately, seniors often find that unexpected emergencies, rising debt and medical conditions make staying in the home difficult. For seniors living on a fixed income, unexpected and rising costs can be financially crippling. Often seniors are forced to lower their standard of living or sell their home. Fortunately, with a reverse mortgage seniors are able to supplement their retirement income and remain in their home for life.

The single best way to evaluate a reverse mortgage is to compare it to what may be your only real option: selling your home and using the proceeds to buy or rent a new home. Do you know:

How much cash you could get by selling your home?

* What it would cost you to buy (and maintain) or rent a new home?
* How much money you could safely earn on any money left over after you buy a new home?
* Have you recently looked into buying a less costly home, renting an apartment, or moving into assisted living or other alternative housing?

Until you have seen and considered other housing options, how do you know that another housing choice wouldn’t be better for you than a reverse mortgage? For you own peace of mind, look into what else might be available. It doesn’t hurt to explore all your options before making a decision.

Most likely you will come to one of two conclusions:

* You may find another housing option that is a lot more attractive than you thought; or
* You may confirm what you were fairly certain of all along: that where you live now is the best place for you to be.

No matter what you conclude, you will have a much better idea of the overall costs – and benefits – of staying versus moving. That will give you a better sense of what is most important to you. And then it should be easier for you to evaluate the costs and benefits of a reverse mortgage.

Kaye Reverse takes care of Reverse Mortgages for its many senior clients in Michigan. To see if a reverse mortgage is right for you and you are a Michigan homeowner log onto: http://www.kayereverse.com/dvd.html and get the FREE DVD.

Kind Reverse Mortgage photographs

Check-out these reverse mortgage pictures:

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Cash in a Nest.

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Home – Reverse Mortgage
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An attractive New House

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Reverse Mortgage Loan Limits Remain In Place At Least until End of the Year

Seniors counting on securing the most money they can from a reverse mortgage need to act now while interest rates are low and loan limits are high, according to Jim Cory from Legacy Reverse Mortgage.

The amount of cash available to homeowners through a reverse mortgage is limited by federal regulations. For now, the Federal Housing Administration (FHA) has decided to leave the limit at $ 625,500, but industry experts believe that could change come next year.

In response to the financial crisis, the FHA raised the maximum amount a reverse mortgage borrower’s property value could be calculated at from $ 417,000 to the current level in February 2009. FHA officials had previously announced that loan maximums would revert back to pre-February levels on October 1, 2011.

However, they now say the higher limit will likely remain in place at least through the end of the year.

October 1 is the beginning of the government’s fiscal year. Historically, officials make changes to many programs effective that day. So there is a possibility for seniors counting on maximizing the amount of money they can receive could be in for a disappointment if they wait too long.

Many industry experts expect to see a number of changes from FHA in the next six to twelve months.

These same industry experts believe that by acting now while interest rates are at records lows, reverse mortgage borrowers will maximize their options.

Regulatory uncertainty is only one factor driving seniors to consider locking in a reverse mortgage sooner rather than later. Low interest rates allow homeowners to unlock the most equity from their homes, while 10-year Treasury notes, a key industry benchmark rate, sit at historic lows.

In many areas, home values are continuing to decline. Since reverse mortgages limits are contingent on property appraisal amounts, borrowers are looking to lock in higher values before the real estate market gets potentially any worse.

The industry is doing all it can to help keep the higher loan limits so that seniors can get the most benefit from their homes.

Peter Bell, president of the National Reverse Mortgage Lenders Association has said, “We’re glad to see FHA take this interim step. It eliminates uncertainty for loan applicants who might have been concerned about not getting their loans before the limits possibly dropped.”

The focus now, according to Peter, will be on persuading HUD and lawmakers to retain the higher limit beyond calendar year 2011.

Since loan limits vary in some parts of the country, it’s also important that seniors considering a reverse mortgage contact a loan specialist to learn about the specific benefits available for their unique situation.

If you’re a California senior interested in learning more about securing the most money your home equity can afford you through a reverse mortgage, please take a moment today to call and speak with a Legacy Reverse Mortgage representative by dialing (800) 991-4613.

Legacy Reverse Mortgage offers Senior Reverse Mortgage services in California. If you’re a California senior interested in learning more about securing the most money your home equity can afford you through a reverse mortgage, please take a moment today to call and speak with a Legacy Reverse Mortgage representative by dialing (800) 991-4613.

More Reverse Mortgage Articles

NBC Today Show – The Pros and Cons of a Reverse Mortgage

http://www.ReverseMortgageColorado.net In Colorado, Call Steve Haney to see how he can help you live your retirement the way you want to with a Reverse Mortgage. (877) 299-5500

The Today Show this morning devoted a four minute segment to the topic of reverse mortgages, spelling out the details of the loans for the increasing number of people who are interested.

Seeing more questions and more interest lately from those who qualify, Today’s financial editor Jean Chatzky answered questions on reverse mortgages, how they work, and whom they are right for.
Video Rating: / 5

HECM stands for Home Equity Conversion Mortgage, popularly known as a Reverse Mortgage. Significant changes occurred on October 1 of this year and Rob Brinkman walks through not only the changes, but the basics of understanding how these mortgages work.

This video will explain many of the rules in order for you to do a reverse mortgage correctly, including what to watch out for and what loopholes can cost you money if not done correctly.

Find out why the maximum mortgage withdrawal went from 70% to 40% along with some other big changes that occurred after October 1st, 2013.

You will also learn about the adjustable rates on the new reverse mortgages and why the fixed rates are a thing of the past.

Popular among seniors, a Reverse Mortgage is a legitimate tool for income planning. As an Income Expert, Rob uses a case study of a typical retired couple living on Social Security, Pension and some Investment Income, to show a scenario that may typically apply.

To find out more about Rob and to download all of his free reports, check out http://www.retirementharvest.com

Nothing in this video can be construed as investment advice or can be used to fully make a decision on a reverse mortgage. This is simply the basic education on HECM’s and you should always consult a reverse mortgage expert before ever making any moves