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I have heard some horror stories abvout the reverse mortgages. I would not go that route.
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You can't believe what a commercial says, even from movie stars. They are just paid to say whatever the RM people tell them to say. How many times have you bought a product that was advertised on TV and found it did not perform as advertised? I have read horror stories about people losing their homes due to RM. I would not use them.
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Originally Posted by BellaBoo
(Post 6411182)
I think reverse mortgage you own your home but can't sell it unless you pay back the payments plus a lot more. It's big financial decision. The house goes to the lender if you have to move due to health or older age. I would get a lawyer that specializes in that before taking the word of a lender. I would borrow on a low interest credit card before taking out an equity loan.
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Originally Posted by grannie cheechee
(Post 6411203)
On one of the investment shows they told that a reverse mortgage is not a loan for short term. In other words if you need money for kitchens it should not be a RM. A RM has a lot of up front costs ( thousands) to even get started, and it keeps increasing as time goes by. Go to a bank or credit union and talk to them about a home improvement loan, or line of credit. They would be better than a RM. This is just my opinion.
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Originally Posted by dcamarote
(Post 6411491)
Please do NOT do a reverse mortgage. My sister did this and she now cannot afford to get herself out of the situation. She owes more, much more, than she originally borrowed. It sounds great but remember that they are charging you interest on the money you get and at the rate that her's has gone up, she will never get out of it. I love the way they tell you, you still own the house. Yes, but only if you can pay them back. Do your research. If you can swing a home equity loan, you will be better off.
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Originally Posted by willferg
(Post 6411270)
My husband was a mortgage broker and he never had any good things to say about reverse mortgages. He tried several times to help people get out of them. I think they may be useful for people who have no other options, but they probably shouldn't be your first choice.
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My mother-in-law did a reverse mortgage after my father-in-law died. It has been a nightmare. As dcamarote mentioned above she owes so much more than what she borrowed.
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FHA and HUD,. that ought to tell you something. it's a shame, every one is out to get money. Seniors should have better options than they do. Good luck!!!
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Heard a story where the lady's name was not on the house. They had a specific reason for doing that, but don't remember why. When he died, she had to move out within a few months. I would not recommend reverse mtg.
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It is also going to be a problem for the house finance people, when they have to take the house back. I don't like the celebrities who go on TV and advertise for them. They are all seemingly astute people and should look into what the thing does before they endorse it. There are fees for appraisals, title insurance, loan fee,etc. just the same as getting any other mortgage and they add all this up on your reverse mortgage at the time you start getting money. I might look into a complete refinance of the house with borrowing some more money if the appraisal comes in high enough as the rates for those mortgages are the lowest. Second mortages such as home improvement loans come at a much higher interest rate. I used to be in real estate, so much as I try not to, I notice the rates for mortgages.
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