Someone WHO CAN EXPLAIN TO ME WHAT!!!?

Question

REALLY MEANS REVERSE MORTGAGE?(SENIORS) please i need to know very important

Answer 1

I'll try...It's like the bank is paying you to live in your house. If you are short on cash and you cant work and your SS or disability checks just arent enough, you can do a reverse mortgage and receive payments from the bank...but the caveat is, after you die, the bank owns the property and it cant be deeded to anyone in a will.  I hope I got that right.

Answer 2

Only Rena got it right.  

Be very careful about this, there is the possibility of a lot of fees and varying interest rates.  Consider all your options, it is a big decision.

Answer 3

The govt is giving you the equity in your home to pay off current mortgage or other outstanding debt. The only repayment is upon death, basically you give them the house.

Answer 4

A Reverse Mortgage lets you access a portion of the money your house is worth without any payments due until you move out or die.  The Deed remains in your name. The Government does not make the loan, although the Lenders have to comply with strict guidelines. The house does not "go to the Bank when you die".  Your heirs can refinance or sell the home, paying off the Reverse Mortgage and the interest and fees that will accumulate during the time you have the Reverse Mortgage in place. The amount of a Reverse Mortgage is usually 60% or less than the value of the home, so the chances are slim that you will owe more than the value of the home when the Mortgage is due.

When you apply for a Reverse Mortgage the Lender calculates the amount of the loan based on the appraised value of your home and your age.  The older you are (you & anyone else on the Deed have to be at least 62)  the higher the percentage of the value of your home you can qualify for. The calculation is done based on the youngest person on the Deed.  Lenders will want you to use whatever portion of the proceeds necessary to pay off any existing mortgages. You can use the balance of the proceeds of a Reverse Mortgage in any way you wish. You can pay off debts, make home improvements, establish a stream of income, go to Disneyworld or take a trip to the Mother Land if you care to.



So lets say you have a home worth $200,000 and you owe $100,000 on your existing loan.The Lender offers you a Reverse Mortgage in the amount of $120,000.  You can use the funds to pay off your existing mortgage and no longer have a mortgage payment, instantly increasing your discretionary income by the amount of your old monthly payment. The balance can be taken as a lump sum, left as a line of credit, set up as monthly payments to you, or whatever arrangement you desire.

Go to a reputable lender's web site (like Wells Fargo) for complete information.