Reverse Mortgages- Anyone Here Have In-Depth Knowledge? (1 Viewer)

[James Edward]

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...

 

[danDo]

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.

 

[SethH]

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.

 

[Scott Merryfield]

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

 

[Chu Gai]

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.

 

[Jim Sentry]

Go directly to FHA and they will explain RM and should also provide a list of participating lenders.