• Reverse Mortgage

    Is A Reverse Mortgage Right For You?

    You see the ads on TV, in the newspaper, and online. They push the benefits of a reverse mortgage for homeowners over 62: pay off your existing mortgage, supplement your income, pay for healthcare expenses, and more. But is a reverse mortgage right for you? That depends. While a reverse mortgage may increase your monthly income, it can put your retirement security at risk if you’re not careful. Reverse mortgages take part of the equity in your home and convert it into payments to you. The money you get usually is tax-free, and it generally won’t affect your Social Security or Medicare benefits. But a reverse mortgage is not all…

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  • Reverse Mortgage

    The Media Continues to Get it Wrong on Reverse Mortgages

    All you have to do is Google the term “reverse mortgage” and you’ll see that some in the media have written articles saying that they should be avoided. And so, as I sat down to write this article, I did exactly that… I typed “reverse mortgage” into Google and started clicking on links, reading what came up from my search. The first one I clicked on was published by U.S. NEWS/Money on December 11, 2012… under the ominous headline: 5 Reasons to Avoid a Reverse Mortgage. However, since the author of this article is only identified as “FMF,” or a “Contributor,” there’s no way to find out who is providing…

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  • Reverse Mortgage

    Types of Reverse Mortgages

    As you consider whether a reverse mortgage is right for you, also consider which of the three types of reverse mortgage might best suit your needs. Single-purpose reverse mortgages are the least expensive option. They’re offered by some state and local government agencies, as well as non-profit organizations, but they’re not available everywhere. These loans may be used for only one purpose, which the lender specifies. For example, the lender might say the loan may be used only to pay for home repairs, improvements, or property taxes. Most homeowners with low or moderate income can qualify for these loans. Proprietary reverse mortgages are private loans that are backed by the…

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  • Reverse Mortgage

    How do Reverse Mortgages Work?

    When you have a regular mortgage, you pay the lender every month to buy your home over time. In a reverse mortgage, you get a loan in which the lender pays you. Reverse mortgages take part of the equity in your home and convert it into payments to you – a kind of advance payment on your home equity. The money you get usually is tax-free. Generally, you don’t have to pay back the money for as long as you live in your home. When you die, sell your home, or move out, you, your spouse, or your estate would repay the loan. Sometimes that means selling the home to…

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  • Reverse Mortgage

    Reverse Mortgage Sales Pitches

    Be Wary of Sales Pitches for a Reverse Mortgage Is a reverse mortgage right for you? Only you can decide what works for your situation. A counselor from an independent government-approved housing counseling agency can help. But a salesperson isn’t likely to be the best guide for what works for you. This is especially true if he or she acts like a reverse mortgage is a solution for all your problems, pushes you to take out a loan, or has ideas on how you can spend the money from a reverse mortgage. For example, some sellers may try to sell you things like home improvement services – but then suggest…

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