Be Aware of Reverse Mortgage Financing Options

by Ramona
(Sacramento, CA)

Reverse Mortgage Financing

Reverse Mortgage Financing

Reverse mortgages sound like a great deal, but it's important for seniors as well as family members to be aware of reverse mortgage financing options.


Like many, I was concerned that my parents didn't have enough money on a monthly basis to take care of their expenses, especially when my mom got sick and needed several hundred dollars worth of prescription medications on a monthly basis. They looked into reverse mortgages, and I wanted to do more, so I did a little research too.

I found out that a number of financing options were available. One of the ones that appealed to us most was the ability to access funds based on the equity that had accrued for their home, allowing them to designate an amount of cash that they would receive on a monthly basis.

However, they could always change their mind and opt for an open credit line of sorts as a result of the reverse mortgage process. These types of loans are very similar to a traditional home equity loan, but it bases its credit cap on the equity built up in your home. Your "credit line" cannot exceed the amount of equity.

While there is certainly a number of benefits to obtaining a reverse mortgage, it's important for seniors to read and understand the fine print.

If the house sells, they move out, or the homeowner dies, the loan amount, plus any interest accrued in the lone needs to be paid back in full.

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Mar 21, 2015
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Reverse Mortgage Financing - Research Options
by: Anonymous

While a reverse mortgage certainly offers a variety of benefits to the elderly, especially those on fixed incomes, it's important to also weigh your options and the differences between varieties of reverse mortgage lenders.

Remember that some mortgage lenders are not quite as upfront about the facts as you would like them to be. Others are very upfront and can help a great deal. Much like any other industry. Do your own homework to avoid getting burned.

Mar 21, 2015
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Reverse Mortgage Financing - Do Your Homework
by: Anonymous

Research, research, research! No matter how good something sounds, make sure that you or your elderly loved ones understand the pros and cons to any type of loan.

Mar 21, 2015
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Reverse Mortgage Financing
by: Wilma

Unfortunately, my mom obtained a reverse mortgage by a fast talking insurance agent. While it sounded good to her at first, she realized, due to medical bills, that she quickly reached the threshold of her equity.

She now knows that if she sells the house, even at a profit, there's going to be less money to leave to her children. That doesn't matter to us, but it did matter to her.

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