If your cash flow has dried up and you have no other way to cover the cost of either major, one-time expenses or minor, daily expenses, a reverse mortgage is an effective way to fill those gaps, possibly for years. But sacrificing home equity today means it won’t be there in the ...
When you do leave the house or pass away, the property can be sold and the proceeds used to pay off the reverse mortgage. The sale price can be equal to the mortgage balance or up to 95% of the home's appraised value, whichever is less. (The mortgage insurance you've been paying w...
With a reverse mortgage, your lender pays you in three ways: Lump Sum: Opting for a lump sum means getting all the loan money at once. This method is ideal if you’re using the proceeds for major expenses. Monthly Payments: With this choice, you receive monthly payouts from the lender....
Reverse mortgages years ago were used to take advantage of seniors. The Federal Government stepped in to ensure those who get reverse mortgages know precisely what they’re getting into financially. Reverse mortgage debt is like any other, so it should be understood completely. The reverse mortgage...
Now don't get it twisted—a reverse mortgage is not free money. It's still a loan that must be repaid eventually. Your debt increases over time. Think of it like this: Borrowed money + Interest + Fees each month = Rising loan balance ...
Is a reverse mortgage right for you? For many homeowners, a reverse mortgage makes it possible to stay in their homes as they age while receiving tax-free income. Many use the funds to supplement Social Security, cover medical expenses, pay for in-home care or make home improvements or mod...
In fact many don’t realize that because it is a reverse mortgage, a payment can be made to offset the interest that accrues on the loan. While it’s not required, it is certainly an option a homeowner has – whether they want to pay anything at all, no matter how large or small,...
A reverse mortgage is advisable for people who have retired, or are in need of additional cash flow to meet their living expenses, but have no means of generating income. In order to qualify for a reverse mortgage, certain criteria must be met. The minimum age of the property owner must ...
Castillo, Glenn V
What Are the Alternatives to a Reverse Mortgage? As you can probably tell by now, Clark Howard isn’t keen on reverse mortgages. “If you’re talking about a family with younger members of means, it is generally better to have them financially help out an aging relative or relatives than...