Each and every week, I receive calls from people who want to know if the reverse mortgage can actually help them. Some, because of major medical issues, have used up their retirement and are living on their Social Security alone. They call out of desperation as they need to make ends meet and are hoping that a Reverse Mortgage will be their answer.
A Reverse Mortgage is definitely NOT for everyone. However, those that it is for will be very blessed by the Reverse Mortgage.
This week, I had a call from a gentleman. He owed $197,000 on his home and after doing our research we estimated his home to be worth approximately $325,000. His mortgage payment is currently $1800 per month. Unfortunately, he did not have enough equity in his home to get a Reverse Mortgage without any out of pocket costs. However, we will be able to eliminate his mortgage payment by doing the Reverse Mortgage and paying some out of pocket costs. By doing a Reverse Mortgage, he will have an extra $1800 per month in his pocket. His out of pocket costs were $14,870. That eliminated his monthly mortgage payment for LIFE! As long as he or his wife live in the home, they will never again need to make another payment. Is this a good deal for him? Certainly!!
Will a Reverse Mortgage Work For You?
Another situation this week came from an individual who had inherited a home from his father. There was about $6000 back taxes owed on the home. He wanted to get some cash and pay off the back taxes. The home did not have a mortgage on it. The longer we talked, I realized he was only 58 years old. The minimum age for a Reverse Mortgage is 62. So while he seemed like an ideal candidate for a reverse mortgage, he wasn’t! quite old enough. A better solution for him was a line of credit from his local bank.
One other call I received this week was from a couple who had major medical bills and needed some financial relief. He had read an article about the Reverse Mortgage and wanted to see if he would qualify. While he and his wife met the age requirement and they owned their home free and clear, the problem arose when it was revealed that their home was a condo. All condos have to be on the FHA approved list. To check if your condo is on the list click HERE. Unfortunately their condo was not on that list. So now the task at hand is to try and get it on the approved list to help this client that is in desperate need.
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