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If you get a Reverse Mortgage, how long will you keep it?

By
Services for Real Estate Pros with Southwest Florida Notaries (Mortgage Notary Signing Agent)

Recently, I saw a statistic published by HUD, stating that over half of all HECM Mortgages (the most popular and common Reverse Mortgage) were not kept for six years.  And many were only kept for three to four years.  One thing to consider about this if you are considering a Reverse Mortgage.  While I am a big proponent of these, to keep it for such a short period of time, makes your APR (the cost to you in an annual term) often extremely high in the teens as far as percent  (15-20%) or even in the 20%'s.  This is as high, if not higher than many credit cards.  If you get this reverse mortgage, consider it to be a long term commitment to keep and help you in your finances!  Then the cost to you drops, as low as 3-8% if kept for a long term.  This is important to consider in your long term financial planning.

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Jeff Kessler
Austin Homes, Realtors www.OwnAustin.com - Austin, TX
Broker,CLHMS,GRI

good point.  I am looking into one from my grandparents.

J.

 

Nov 02, 2007 04:21 AM
Margaret O'Daniel
NM Notary Loan Signing Agent - Albuquerque, NM
My mom got one in August.  She is very pleased with it.  She still finds that she wants to continually upgrade the property, then she realizes that is not hers anymore.  A little sad
Nov 02, 2007 04:33 AM
Ronald Gillis
Southwest Florida Notaries (Mortgage Notary Signing Agent) - Port Charlotte, FL
CNSA Southwest Florida. Notaries, Port Charlotte, 941-7-NOTARY

MARGARET - Check out my previous blog - http://activerain.com/blogsview/229001/Still-the-most-common  _ and the VERY FIRST myth - YOU (or in this case, she) still owns the home and can do anything within reason - IE, she can't destroy the home as you must maintain the home like any mortgage, etc. If you want, feel free to give me a call!  JEFF - RM's are not for everyone, but for the right person, they can be a tremendously great opportunity to lift a financial burden off someone's shoulders!  If you need a good company, I can refer you to several great companies that specializes in RM's! 

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Nov 02, 2007 08:04 AM