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What's the 411? How safe are Reverse Mortgage?

Caryll Miller Reverse Mortgage Specialist 877-509-8800 The home Equity Conversion Mortgage (HECM) is the most popular reverse mortgage, it is insured by the Federal Housing Administration (FHA) and the concept of Reverse Mortgage is fully endorsed by the AARP. You continue to remain on title as the owner of your home. Also, as there are no monthly payments required, you can never be forced to leave your home due to falling behind on your mortgage payments.

That kind of peace of mind I think is the best thing about this program. I was just telling my Mom the other day that I which this program was available to everyone because I would be the first to jump on it.

Upcoming FAQ are:

What will happen to my house when I die?
What are my responsibilities once I get a reverse mortgage?

Have any other questions on Reverse Mortgage or any other Mortgage Please post it here or visit my other blog www.mycarteretlo.com

Posted by Caryll Miller ( Mortgage Specialist!) on 03/29/2007 01:35 PM

Comments (7)

is reverse mortgage safe, reverse mortgage, hecm, aarp

7 Comments on What's the 411? How safe are Reverse Mortgage?

MAR

2007

My first reaction is that I don't like the idea of a reverse mortgage. Maybe I'll be convinced otherwise when you answer the FAQs that you brought up. The bottom line is that it's your money and belongings. Do what you see fit. Being a former AARP member, there are several other positions that they take that I am against because I don't find them in the member's best interest.

Hey Caryll,

I've had a few people contact me about Reverse Mortgages. But often times, the limitations kill the deal in California. I think the product will have it's place with the Baby Boomer generation, with so many having little liquidity aside from the equity in their homes...

Scott

There are minimum age requirements, and the maximum (reverse) Loan to Value is determined by a 'secret' formula applied to a specific zip code. The proceeds may be in a lump sum, or in installments.

The only way to determine eligibility and maximum benefit would be make application.

Aside from spending someones inheritence... I don't see a downside.

I am with you David, I really don't see a down side

"Fractional Ownership loans at market rate"

Would this be for time shares, or cooparatives?

Fractional ownership is completely different than time share because unlike time share you own the equity as well so you can refinance or sell like any other property.

To learn more check out my blog on it

Lending at market rate for Fractional Ownership

Caryll - This is a great topic to be doing. One of the things I like about these is that they can be used in a purchase when the customer has at least 50% down payment money. It can be a wonderful way for empty nesters of age with a large house to use the home they own to leverage down into a smaller house upon sale of there current residence. Kind of a reverse 1031 exchange for non income producing residential.

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