How do reverse mortgages work?
Where can I find out all the details about reverse mortgages?
Tags: Mortgages, Reverse, reverse mortgage, WorkWhere can I find out all the details about reverse mortgages?
Tags: Mortgages, Reverse, reverse mortgage, Work
They are not financially sound. If you are desperate for monthly income, about 80 years old, and have your house paid off (or mostly paid off) then it could be an avenue to investigate. Otherwise, they prey on elderly people.
Hello John,
There is nothing better than going right to the source for information. Over 90% of reverse mortgages are known as Home Equity Conversion Mortgage (HECM) which are insured and regulated by the Federal Govt. The address below will take you right to the HUD website concerning reverse mortgages.
http://www.hud.gov/offices/hsg/sfh/hecm/hecmhome.cfm
Reverse mortgages are basically home equity loans for seniors who are 62 and older. One of the main benefits of reverse mortgages is that they do not require the borrower to repay the loan as long as they live in the home. You can use the proceeds to repay an existing mortgage (and thereby eliminate monthly mortgage payments), or just take cash out of your home to meet living expenses. The funds can be disbursed in a variety of ways to meet the needs of the borrower, such as a lump sum or a line of credit that can be drawn upon as needed. There are several proprietary products available, but the FHA HECM is the most common.