Lets look the reverse mortgage and see how most of the seniors learn about these financial aids
frighten the perspective users because a number of movie stars announce and explain what they
are and how they work. Unfortunately these stars do not have the greatest reputation for building
their own wealth and explaining how this vehicle can be terrific for the seniors. The actors generally do not have a great reputation for using and building up their wealth and that frightens the perspective buyers.
The government backs the reverse loan and the government is certainly not made up of a group of
sharp financial individuals. If it was we wouldn’t be as broke a nation as there ever has been. So let’s look at the lottery as it is eacy to play, unfortunately not easy to win. I believe you can’t. period.
In my attempt to give a nice introduction it will appear to be going the wrong way, only because there hasn’t been much time to have people really hit the jackpot. The jackpot is living “free” in your own home and can be even better if you truly understood your needs as you become a senior citizen. (I know because this inconvenience in many ways; work, health, money accumulation, etc. came to me many years ago). If you hang on to good health the rest is simple: plan and put the plan to work for you and your family.
Imagine not making a payment, except for property and insurance, on your house forever. This is number 1 and should always be. Ridding along with this non-payment idea is the fact that when
the last of the borrowers is forced to leave the house to get better personal attention when he or she is ready, you still own the house which you can sell and reap the benefit. You will owe the mortgage which will be what you traded your mortgage plus accrued interest
Note: If your house didn’t increase in value or you have been accruing the interest which now exceeds the value, you will only be charged for what the house is currently worth. There is not a
deficiency judgement. If it isn’t worth what it would take to demolish, that is all you pay from the sale of the house when you leave.
This is just the beginning of the story! The meat of the program follows!
1. The headlines on Reverse Mortgages are as follows:
No mortgage payments on the house from inception until the last
person on title leaves the premises for good.
When the property is vacated the mortgage and accrued interest is
due to be paid back. The pay back comes from the sale or refinance
of the property, or the heir’s paying from their sources. If the house isn’t’
worth full price the lender get’s what ever comes out of a sale and nothing
2. You can make money for yourself if you take the money you would have paid
and set up an investment for you. If you make money and the lender
doesn’t; it is okay and you still don’t have to pay anything back if it turnes out
with you making money and the bank doesn’t make any money.
. Last of all you can take the money that would have gone to the lender and remodel, albeit slowly, and increase the value where you live.
The most important point I can help you with is that the house you are going to
put a reverse mortgage on will have the same value at the time you leave it for
good if you simply leave the reverse mortgage alone, not have a first mortgage,
or if you take the extra money and remodel your house.!