Did you go to this man’s mortgage burning party?
My parents and those older (I’m 34 right now) were born and raised to think debt was bad, heck they likely lived through the Great Depression, I guess I would as well then, but back to the story.
I’m writing this post on an example of when a reverse mortgage is the right loan. An elderly gentleman who spent his working years trying pay off his house and did, now needs money to pay for repairs. A new roof, and heating system. Since he put all of his money into paying off his house and not into retirement accounts, he now just receives a small pension and his social security each month. It keeps food on the table, but won’t pay for the repairs. He talked with his local banker who suggested a home equity loan. Well it was the best loan that they could offer him, but not the best loan for the borrower.
A reverse mortgage would be much better. He would not cut into his already small monthly income to make payments, he would not have to give up his house, and more importantly he can get the repairs done now. Should he need more money in the future, he should have access to more funds. A reverse mortgage allows borrowers to get a lump some of cash, monthly payments, or the most popular a line of credit (except in Texas), or a combination.
My advice if you or someone you know is in this situation? Find a loan officer who can offer a reverse mortgage, find someone who is skilled and experienced in reverse. Since everyone is basically offering the same loan, terms, and price you might as well get someone who knows how to do it. Try this site from the National Reverse Mortgage Lenders Association, and select “Locate a Lender“
Reverse Mortgage Books from Amazon
