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Answers (5)
- Gene Mundt, "profmortgagebanker"
- Contributions:74
aylasgma:
It's very hard to answer this question in a broad sense. Each Reverse Mortgage, as with any mortgage, depends on the borrower's/homeowner's personal and individual circumstances involved. With Reverse Mortgages in particular, you want to proceed with caution and protect the interests of the senior(s) involved. For that reason, I utilize only FHA Reverse Mortgages. They offer the greatest protections and outlets for gaining information regarding this type of loan. Pre-counseling is mandatory for someone considering this type of lending before they sit down with the lender.
I always go one step further and ask that all my seniors considering this loan bring someone else with them to the counseling sessions and during my time with them as well, whether that be a family member, caregiver, attorney, pastor, or friend. That way they are more comfortable within the counseling sessions and appointments with me and there are two sets of ears listening to the information provided.
A complete and thorough evaluation of the financial scenario being faced will conclude whether to proceed with a Reverse Mortgage or to find another solution. There are many misconceptions facing these loans. I have some preliminary information on Reverse Mortgages there. For a complete analysis of whether a Reverse Mortgage is the correct and best financial option to exercise. That truly will be the only way the correct final determination can be made.
It's very hard to answer this question in a broad sense. Each Reverse Mortgage, as with any mortgage, depends on the borrower's/homeowner's personal and individual circumstances involved. With Reverse Mortgages in particular, you want to proceed with caution and protect the interests of the senior(s) involved. For that reason, I utilize only FHA Reverse Mortgages. They offer the greatest protections and outlets for gaining information regarding this type of loan. Pre-counseling is mandatory for someone considering this type of lending before they sit down with the lender.
I always go one step further and ask that all my seniors considering this loan bring someone else with them to the counseling sessions and during my time with them as well, whether that be a family member, caregiver, attorney, pastor, or friend. That way they are more comfortable within the counseling sessions and appointments with me and there are two sets of ears listening to the information provided.
A complete and thorough evaluation of the financial scenario being faced will conclude whether to proceed with a Reverse Mortgage or to find another solution. There are many misconceptions facing these loans. I have some preliminary information on Reverse Mortgages there. For a complete analysis of whether a Reverse Mortgage is the correct and best financial option to exercise. That truly will be the only way the correct final determination can be made.
- aylasgma
- Contributions:11
This is actually for a friend, who posed the question to me.
She is at shogan91@hotmail.com
thanks for the insight, though
E's friend, L
She is at shogan91@hotmail.com
thanks for the insight, though
E's friend, L
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3428
AA -
It runs both ways, I have often encountered parents who insist on "leaving something" for the kids, perhaps the paternal instinct of caring for the children plays a role. Also, I think the utilization of debt as an asset is relatively new within the last 15-20 years, the old fashioned way of avoiding debt and having houses free and clear is not as prevalent as it used to be.
The concept of spending your very last penny on the shovel that buries you (kind of what the reverse mortgage does) has become more common, and is a major reason for meltdown, so on a macro scale I'd rather err on the side of better safe than sorry than I would on living on the edge.
I don't oppose the reverse mortgage, but I think there are often better options available, one of which would include the children helping out financially while the parents are still alive!!
It runs both ways, I have often encountered parents who insist on "leaving something" for the kids, perhaps the paternal instinct of caring for the children plays a role. Also, I think the utilization of debt as an asset is relatively new within the last 15-20 years, the old fashioned way of avoiding debt and having houses free and clear is not as prevalent as it used to be.
The concept of spending your very last penny on the shovel that buries you (kind of what the reverse mortgage does) has become more common, and is a major reason for meltdown, so on a macro scale I'd rather err on the side of better safe than sorry than I would on living on the edge.
I don't oppose the reverse mortgage, but I think there are often better options available, one of which would include the children helping out financially while the parents are still alive!!
- Andrew Adams, "203K Specialist"
- Contributions:9349
Justin...we usually agree but I have to say that it would be far more important to me that my parents live comfortably rather than preserve equity!
If the kids don't want the parents to live comfortably, they do not deserve an inheritance!
Reverse mortgages are expensive up front but they can create a whole lot of freedom, no mortgage payments and a check every month to suppliment other retirement income. Particularly for those who have lost a tone in the market and the nest egg is much smaller than it was 2 years ago.
If the kids don't want the parents to live comfortably, they do not deserve an inheritance!
Reverse mortgages are expensive up front but they can create a whole lot of freedom, no mortgage payments and a check every month to suppliment other retirement income. Particularly for those who have lost a tone in the market and the nest egg is much smaller than it was 2 years ago.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3428
Good last resort if monthly budget creates a deficit. Gets tricky when there are children involved and preservation of equity becomes the focus.
Like anything else, each scenario is different, what prompted you to consider this option?
Like anything else, each scenario is different, what prompted you to consider this option?
when to use reverse mortgage?
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