Question
What is the cost of a Reverse Mortagae Is it worth it?
I'm single and I am 62 years old. My house is paid for and I can't work. I'm working with an attorney to get disability but this could take months. Any information what so every would be so helpful. At this point I am getting scared my phone and power will be shut off. How long does it take? About what is the cost to get a reverse mortgage? This is all I have to my name is my house. I have no money. What should I do? I can't sell it right now because I will never get what it is worth. To help with an answer I will guess my house is worth about $250K Thank-you for any help!
1 month ago - 5 answers
Best Answer
Chosen by Asker
A reverse mortgage is probably the worst deal on the market. At best, you borrow $125K of the $250K house. The rest goes to fees and/or interest. You agree to pay insurance, property taxes and maintain the house. All of this is going to cost more money than if you lived in an apartment. If you fail to do this, move or move into a nursing home, they can take the property. It's almost always a better idea to sell.
by the tax lady
1 month ago
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Other Answers
What you need right now is a HELOC. Go to your bank and explain the situation, and make sure they understand that your house is paid off. A HELOC gives you temporary money secured by your house. It's a kind of mortgage, but easier to get and shorter term. And you can pay it off, then, if you need the money again, you can borrow again on the same HELOC. If you have bad credit, you would get a smaller HELOC, for a lower percentage of your house's value. But it's the best way to get temporary money, such as while waiting for a disability claim. Keep in mind that when you get your disability claim approved, you will get disability income for all the months it was in the approval process, which adds up to a lump sum which might be big enough to completely pay off the HELOC.
by Dilbert- 1 month ago
It does not cost anything up front. First you find out what it is worth and based on that and your age they will lend you a certain amount of money. You will be responsible to pay all taxes and insurance and all upkeep expenses on your home. Talk to a reverse mortgage lender for all free information and ask all kinds of questions. Each one is a little different. They can give you the money monthly or yearly or all at one payment. You decide that. You get to live in the house the rest of your life without making payments on the loan. Remember you must still pay all taxes, insurance, upkeep like you do now. If you decide to sell it in a few years if things get better,you will have to pay the loan off with the sale of the house. The longer you keep the reverse mortgage, the more it will cost you. If you stay there till you die,the house will be sold to pay off the mortgage,and if any money is owed to you, it will go into your estate. You should name someone to inherit it. I hope I helped.
by Larry W- 1 month ago
i would not go for it always go with your gut!!
by sam- 1 month ago
A reverse mortgage has been set up specifically for people over the age of 62 who have low or no income. The person who suggested a HELOC was on the right track but you wuld have a hard time paying that loan back. You can use the equity in your with a reverse mortgage and receive a equity line which would allow you to pay your bills. It would work like a checking account where you can write checks only for the amount you need. This is what would work best for you. If you have any further questions send me an email.
by Thomas- 1 month ago