Question
Reverse mortgage exceeding house value?
Hi, I'm learning about reverse mortgages and there's one thing I DO NOT understand. Since home values can fluctuate, how can it be guaranteed that the amount owed at the end will not exceed the value of the house?
4 weeks ago - 4 answers
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Reverse mortgages can be confusing. You can learn more about reverse mortgage problems here: life123 ... Good luck!
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4 weeks ago
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Other Answers
Generally you want to retain at least 20% equity in home that is NOT paid out. Generally home values rise, but we're proof that they can also dip.
by chatsplas- 4 weeks ago
Once issued the maximum due is the house, regardless of what how much is owed. So if 150k is owed on a 100k house, let the house go. If only 75k is owed on the same house, sell the house and pay off the mortgage and keep 75k.
by Judgment CARE- 4 weeks ago
Which is why the lenders stack the deck in their favor. High fees, high interest rates, caps on how much they will lend, etc.
by the tax lady- 4 weeks ago