I'm curious to know if anyone here has had any experience with a reverse mortgage? My mother's home is free and clear and she could use some additional monthly income. I've looked at Wells Fargo but would like to talk with someone that has actually had a hands on experience, thanks.
Anyone here in the Reverse Mortgage business??
- Thread starter The Boys
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yes, I am in the mortgage business. Google hecm 100 this is probably the best program out there. Check with major lenders like bank of new york, check there margins, margin = profit, the lower the margin the more money goes to the borrower.
By the way, where does she live, I am in Ocean County N.J.
Good Luck
P.S. I would only do this if she absolutely needs more, either monthly or to pay off debts she can not manage on her own.
By the way, where does she live, I am in Ocean County N.J.
Good Luck
P.S. I would only do this if she absolutely needs more, either monthly or to pay off debts she can not manage on her own.
for the most part, agreed, but in the case of an elderly person needing some cash in retirement, its actually a good idea
Dont think there is an interest rate...........think your borrowing you own money as they use the equity that has built up in the home. I'm not sure about this, maybe Dugan knows...........Dugan she's in Michigan.
yes, there is an interest rate, 5.93 for a hecm monthly adjustable, where as a 30 year fixed is about 6.125.
Go to AARP website and research reverse mortgages, theyre site is excellent and not biased. The lender accrues interest until the home is sold or the borrower permanently moves away.
Go to AARP website and research reverse mortgages, theyre site is excellent and not biased. The lender accrues interest until the home is sold or the borrower permanently moves away.
Doesn't the 5.93 off set if you take a monthly check??? Knowing you can get 6% on a CD it should zero out, dont you think?
The interest rate is a monthly adjustable, it changes every month and can go up an additional 10% , so the cap would be 15.93%, Allthough In the last 15 years the rate has never gone higher than about 9%. The reverse mortgage is not an investment tool, it is designed for people who can not meet there daily bills. Keep in mind the interest accrues every day, it is a negative amortization loan.
I would just do a HELOC. Prime Rate is kind of shitty right now 8.25%, but with a HELOC she can write checks when she needs the cash and will only pay interest on what is borrowed (interest only)- also tax deductible. She can make the payments through the HELOC itself. After doing some research I came to the conclusion that this was a better alternative for my Grandma. If you think you're going to live till 110 then the reverse mtg. would probably be better
