coopah

My mother's father needed improvements on his home during the 'elder' years. My dad scheduled & paid for the repairs when he heard my grandfather had been talking to someone about a reverse mortgage. That convinced me not to do a reverse mortgage...my dad was tight with his money, but he was also wise.

marla

I heard bad bad things about it. Save up or take a loan but don't do the reverse mortgage. They could be predators and you end up w/o a home. They probably will tell you it's legal---true-=just like those pay day lenders who charge so much interest, the borrower never gets it paid down. Another racket and should be a law against these companies.

marla

I've seen the guy who they use from the ads. I can't remember his name but probably is his only income--low grade actor. He doesn't care cuz he gets big bucks for doing the ad. Just show you his true character.

Maggiemay

I would talk to your bank about a Home Equity Line of Credit.

jbj137

Reverse Mortgages are the pits.

I have a friend who tried it.

If you have to leave your house for (hospital, rehab, nursing home, etc.) they
can sell the house.

If you cannot pay the taxes & insurance just 1 time,
they can sell the house.

When they say "As Long as you Live in the House" they mean it
leave for and extended period and you are HOMELESS.

It is Another scam just like Check Advancement Loans.

The same with the companies they will buy your
Timed Payment Payouts, they give only a very SMALL
portion of the amount you would have received in full.

dcamarote

Don't know exact lender but it was a well known national bank; like a Provident or Wells Fargo. She was very disappointed. She borrowed 85,000$ on the house that was appraised at $250,000. The house is now worth about $200,000 with the real estate market drop. She now owes, with interest over 9 years, close to $200,000. It is a no win situation. Don't do it.

Slow2Sew

A friend's parents got a RM on their family farm when the dad became terminally ill. All the money was spent on doctor bills. The widow has no money left, cannot afford to pay rent anywhere else now and has to continue living in the farm house that is too large for her and is in need of repairs.

matraina

I don't know anyone personally who got an RM but while visiting friends out of state, one of the friends was trying to settle things after her mother's death. She said not ever to get a reverse mortgage. There was so much involved and it was really not advantageous at all. She thinks her mother got taken and the whole situation was a mess.

cwcquilters

There are some unsavory Reverse Mortgages out there. Be wary of the fees and "hidden" charges. Some are outrageous. Home Equity seems a better way to go from what I have seen.

cathyvv

While I'm not a financial expert, my opinion is that you are better off with a home equity loan. Why? Because while you don't have to pay a reverse mortgage back, you do accrue MORE interest on the reverse mortgage loan every month that it is outstanding. Over time, the interest can raise the amount you owe on your home to more than the home is worth if you try to sell it.

Reverse mortgage is, in my opinion, a 'legal' scam. The guy who advertises it used to be on Law and Order and was a US Senator, Fred Thompson. He actually ran for President in 2008 - got weeded out early. He was, by the way, Senator for TN from 1994 to 2003, and also was a practicing lawyer before getting into acting. He's a smart man, but I can't see that anything he's done in the past qualifies him to give financial advice to anyone. He's basically an unwanted telemarketer who comes into our homes via TV ads.

Having said that, it may be the only choice for those who have no other assets, on a low fixed income and need additional cash flowing in every month to live.
[h=2]Reverse Mortgage Cons[/h]

• The fees on a reverse mortgage are the same as a traditional FHA mortgage but are higher than a conventional mortgage because of the insurance cost. The largest costs are:
  • FHA mortgage insurance
  • Origination fee
• The loan balance gets larger over time and the value of the estate/inheritance may decrease over time.
• Although Social Security and Medicare are not affected, Medicaid and other need-based government assistance can be affected if too much funds are withdrawn (and not spent) in one month. (Note that this could mean that if you need to be in a nursing home, you won't qualify for Medicaid assistance because of the income from your reverse mortgage. )
• The program is not well understood by most individuals. However, the availability of independent reverse mortgage counseling helps.