Reverse Mortgage - Good or Bad?

By
Mortgage and Lending with Orange County, Corona, Riverside, Los Angeles NMLS#203003

Reverse Mortgage Good or Bad?Good Vs. Bad?

I’m asked that all the time and I believe the answer is different for every circumstance.

As in many things, it’s not the tool – it’s the user.  Here are some things to consider as you mull over the suitability of a reverse mortgage for yourself, a client or loved one.


  1. Do you understand the way the reverse mortgage works? (The concept of negative amortization)

  2. Do you have a plan on how you will use the reverse?

  3. Can you articulate the benefit to you of your choice of reverse mortgage product, Fixed vs. Adjustable or Standard vs. Saver? Open-ended vs. Closed-end.

  4. Time goes by in the blink of an eye, how will your reverse mortgage be working for you in 10, 20 or 30 years?

  5. What are your plans for your home, do you want to live there till you die? What if you get sick?

  6. If your heirs want to keep the home in the family after you pass – do they have a strategy for paying off the reverse mortgage?

For some interesting and useful strategies for using a reverse mortgage to accomplish your retirement goals please check out the following posts.



Reverse Mortgages Good or Bad?  Neither. It's up to you..... but using a reverse mortgage is...

  • BAD = When they are pushed by unscrupulous lenders or greedy children as a way to make/acquire money at the expense of a seniors future lifestyle.

or

  • GOOD =When they are used as a financial tool to ease and structure retirement lifestyle and understood by the senior and their families with a plan.


Thank you for reading my post.  If you found this information helpful or if you have any questions please post your comments below or email me by clicking on the "Learn More" button below.

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By Deborah Nance

Your Local Southern California Reverse Mortgage Professional

How Much Do You Qualify For?

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Topic:
Lending / Financial
Groups:
Southern California Real Estate Forum
Seniors Issues
Mortgages
communities for those 55 and better
The FHA Mortgage Group
Tags:
senior loan
reverse mortgages

Comments 3 New Comment

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Rainmaker
711,204
Will Nesbitt
Nesbitt Realty is a family-run brokerage.
Nesbitt Realty at Condo Alexandria

Good Question Deborah and great subsequent information. Keep up the good work

 

June 27, 2012 08:29 AM
Rainmaker
366,203
Pat Champion
Coldwell Banker Camelot Realty

You have done an excellent job of explaining the reverse mortgage; of course, every individual has to decide for themselves if this program is for them.

June 27, 2012 09:04 AM
Rainmaker
123,209
Deborah Nance
Southern California , Reverse Mortgage Specialist
Orange County, Corona, Riverside, Los Angeles

Pat - Thanks for your kind words.  I agree, each interested party should get educated and decide for themselves. And shop around!

Will- Thank you for the nice commet. I am to please. :-)

June 27, 2012 10:15 AM
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Rainmaker
123,209

Deborah Nance

Southern California , Reverse Mortgage Specialist
How Much Will You Qualify For?
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