What is a Reverse Mortgage and are they good loans?
*MacDaddy* asked:
My neighbor told me about these reverse mortgage loans and I wanted to ask here if this a safe way to get some cash out of my home.
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My neighbor told me about these reverse mortgage loans and I wanted to ask here if this a safe way to get some cash out of my home.
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Tags: Mortgage Loans, Neighbor, Safe Way
October 29th, 2008 at 5:27 pm
A reverse mortgage is a really great thing if you have lots of equity in your home, and you don’t have very much liquidated cash to enjoy your retirement.
Anyways, you can find info and resources about reverse mortgages here:
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October 30th, 2008 at 4:37 pm
The only time a reverse mortgage is good is when you have less than 7 years to live.
Bad idea, all the way around.
October 31st, 2008 at 6:23 pm
If you are looking for a reverse mortgage to receive some much needed cash, you may want to look into a reverse mortgage wholesale loan.
This type of mortgage loan is sold to a lender at a discounted rate and the lender will add points to the rate and pass the savings on to you.
November 2nd, 2008 at 12:43 pm
Yes, they are safe. However, you must be at least 62 and have enough equity to qualify. This varies by age. But, if you meet the guidelines, there are no payments and no credit requirements. It’s a federal program and very safe.
November 5th, 2008 at 3:05 am
Yes, they are a safe way to borrow. A reverse mortgage is a loan for homeowners age 62 or older. It allows you to borrow against your home equity to create tax-free income without having to sell your home, give up title to it, or make required monthly mortgage payments. The loan becomes due when the last borrower permanently leaves the home. The income received can be used for almost any purpose you choose.