Reverse Mortgages Pros and Cons

Update: The key is suitability. Is it right for your circumstances? California and now Utah have new laws that give the consumer tools and time to determine suitability before the application. Although both states call it a cooling off period it is really the dedicated time for the consumer to get help from trusted advisors to understand if this is right for you now and through retirement. This is a complex financial transaction there is no hurry to sign on the dotted line because there are lifelong consequences. FYI HUD counselors cannot give any advice about if it's right for you, and definitely no legal or financial advice. If a reverse mortgage is suitable at origination there is far less risk for consumers in the servicing and maturity. 95% of consumers I talk to are in crisis because a reverse mortgage was not suitable and they didn't understand the terms. Get everything told to you verbally in writing!

Thanks - good information here. These loans are misunderstood, I think, especially in the media, I just published an article on Reverse Mortgage Risks and Rewards that your readers might appreciate at Partners4Prosperity: http://partners4prosperity.com/reverse-mortgage-risks-and-rewards-should-you-bank-on-your-home (BTW they do not sell reverse mortgages; the article is from the point of view of a financial advisor who recommends them for some clients.)

Great article. Many seniors are going to find this to know update - http://www.reversemortgagelendersdirect.com/reverse-mortgages-pros-and-cons/

Wayne we currently are able to help you with a mobile home - recently we have added a federally chartered bank which can do them http://www.reversemortgagelendersdirect.com/manufactured-homes-reverse-mortgage/ to learn all the pros and cons of the HECM in general visit or call us 877 700 0534 http://www.reversemortgagelendersdirect.com/reverse-mortgages-pros-and-cons/ http://www.reversemortgagelendersdirect.com/how-does-a-reverse-mortgage-work/

I was really excited when I learned about reverse mortgage but I have a lot of doubts on how it work, if those thousands calculators are telling me the truth of it .. but finally I manage to find some simples information on how reverse mortgage works thanks to rmld.net! Check their website! www.reversemortgagelendersdirect.com

I got some ideas and direction for reverse mortgages. I am thinking of obtaining one as I need a new roof and can't afford one on my limited budget.

My husband suggested that I use my savings, CD, etc. buy a house with the money and then do a Reverse Mortgage. Would this be wise?

Just to answer a few of the questions, both spouses need to be over 62. If one spouse dies the other can live in the house. The money can be paid as a lump sum or as monthly payments. If you choose monthly payments you will be paying less interest over time which is a savings unless you need the lump sum right away. Overall fees and costs have come down a lot and they are a good option for house rich seniors. I learned about reverse mortgages here: http://www.reversemortgageproscons.com

my husband is 63yrs and I am 60 he wants a reverse mortgage i don't , what will happen if I out live him will I have to sale the home?

what if one of the homeowners are not 62 years old yet can they still qualify for a reverse mortgage? What will happen if one spouse dies will the other spouse be able to remain in the home and receive payments? How will the money be paid to the homeowners?

How do it work when you need some money to pay some bills. Will I be making payment on the loan or how will it work

If it is a double wide, is newer than 1978 and meets FHA guidelines. A foundation inspection also must be done.

Just to add clarification to some of your points of information.... -when the senior passes, the heirs are given time to either sell the home or refinance the home if they wish to keep the property. -reverse mortgages are offered with FIXED rates. -you mention getting a line of credit or doing a regular refinance as an alternative, most seniors do not have the income or credit to qualify for either of those programs. -the newer FIXED rate reverses have lower closing costs which allow more money to the senior.

Can a reverse mortgage be applied to a mobile home?