Is a Reverse Mortgage a safe way to get some equity out of my home?
A reverse mortgage is a really great thing if you have lots of equity in your home, and you don’t have very much liquidated cash to enjoy your retirement. My mother had a house paid in full in Santa Barbara, CA but was living off of social security checks. I helped her get a reverse mortgage loan from Financial Freedom. Then she was living life to the fullest until she passed away 6 years later. My siblings were livid when they found out she got that loan, because they thought she would eat up their inheritance. But she sure loved life those last years of her life, going to the off-track horse racing, bought a new car, new hi-def tv, remodeled her kitchen with Viking appliances. So, yes it can be a very good thing. But you must remember that it is basically selling your house slowly back to a financial institution. If my mom would have lived long enough, my brother and sister (and me) would not have inherited a dime, but that was ok with me.
Anyways, you can find some info and resources about reverse mortgages here:
http://reversemortgageresource.blogspot.com
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A reverse mortgage is a really great thing if you have lots of equity in your home, and you don’t have very much liquidated cash to enjoy your retirement. My mother had a house paid in full in Santa Barbara, CA but was living off of social security checks. I helped her get a reverse mortgage loan from Financial Freedom. Then she was living life to the fullest until she passed away 6 years later. My siblings were livid when they found out she got that loan, because they thought she would eat up their inheritance. But she sure loved life those last years of her life, going to the off-track horse racing, bought a new car, new hi-def tv, remodeled her kitchen with Viking appliances. So, yes it can be a very good thing. But you must remember that it is basically selling your house slowly back to a financial institution. If my mom would have lived long enough, my brother and sister (and me) would not have inherited a dime, but that was ok with me.
Anyways, you can find some info and resources about reverse mortgages here:
http://reversemortgageresource.blogspot.com
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LikeDislikeOnly if you are trying to avoid repaying the loan. I think they can be relatively expensive in terms of accessing your equity.
If payments are not a big issue, check with your local banks to see how the reverse mortgage compares with a regular home equity line of credit. Many are at prime – something and have no closing costs and even offer the option of fixing the rate if rates start to move in the other direction.
Ask friends and family if they have any mortgage professionals they would recommend. A referred client is the highest compliment and the LO has a double responsibility to take good care of you; 1 so that the reputation of the referring party is protected and 2 so that you would be comfortable referring your friends and family to them for service.
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7 years mortgage lending experience.
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LikeDislikeMr. Stevens,
Your answer is NO because a reverse mortgage essentially takes all your equity out of your property. Further property appreciation goes to the home reverse mortgagor and in place and stead you have essentially purchased a lifetime annuity.This is not necessarily a bad thing if this is what you desire and there usually exits some minimum guarantee pay back so you do not lose all if you die unexpectedly early…
If you are truly only seeking to get "some" equity out of your property…this is NOT THE WAY TO DO IT. Assuming you want only to take some equity out of your property, do you have any ability to repay your loan so you will not be forced to sell the property or worse suffer foreclosure?
Good Luck
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Been there and done that
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LikeDislikeEach situation is different and unique. It really depends on what you mean by getting equity out of the home. If you just need a quick 20k, then no, I don’t think it’s your best option. If your retired, want to supplement your monthly income and don’t have anyone to leave the property too, then yes, it’s a great option. Look at what your needs are right now and then also examine how this could effect you 10 years from now, then decide, best of luck
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7 years in mortgage industry
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