Reverse Mortgages- Anyone Here Have In-Depth Knowledge?

Discussion in 'After Hours Lounge (Off Topic)' started by James Edward, Mar 2, 2006.

  1. James Edward

    James Edward Supporting Actor

    Joined:
    May 1, 2000
    Messages:
    858
    Likes Received:
    0
    I have an 85 year old neighbor who I believe would really benefit from reverse mortgage. Her house is paid off, and she has no children to be concerned about leaving it to.

    Before looking on the outside, I figured I'd ask if anyone here works with such a mortgage product, or perhaps guided their parents through getting one. My main concern, as always, is that she not get ripped off.

    Are there any pitfalls to be aware of, or any reason that such a mortgage might not be appropriate for her?

    Thanks for all responses...
     
  2. danDo

    danDo Agent

    Joined:
    Jan 16, 2006
    Messages:
    47
    Likes Received:
    0
    I have heard of cases where it was good for some people and not good for others. It really depends on the individual situation.

    My best advise would be to talk to a few financial advisors in your area.
     
  3. SethH

    SethH Cinematographer

    Joined:
    Dec 17, 2003
    Messages:
    2,867
    Likes Received:
    0


    I agree with this, and I'd add that she should try to talk to one that doesn't work on commission. A financial advisor on commission should be illegal IMHO.
     
  4. Scott Merryfield

    Scott Merryfield Executive Producer
    Supporter

    Joined:
    Dec 16, 1998
    Messages:
    11,692
    Likes Received:
    763
    Location:
    Michigan

    Absolutely. We use a fixed-fee financial advisor. I would never trust the advice of someone who makes money only from selling you something.
     
  5. Chu Gai

    Chu Gai Lead Actor

    Joined:
    Jun 29, 2001
    Messages:
    7,270
    Likes Received:
    1
    If she has some sort of income, then she's better off with some sort of equity loan. The rates and fees for these reverse mortgages can be quite onerous.
     
  6. Jim Sentry

    Jim Sentry Stunt Coordinator

    Joined:
    May 16, 2002
    Messages:
    179
    Likes Received:
    0
    Go directly to FHA and they will explain RM and should also provide a list of participating lenders.
     

Share This Page