Reverse Mortgages

[Rich Toscano]

Not a mortgage expert but as far as I know, HELOCs are always variable while some reverse mortgages are fixed. This is a huge difference IMHO as the latter protect you from the risk of increasing interest rates.

[HLS]

Rich is correct about HELOCS being adjustable rates and reverse m’s are fixed, but the fees can be obscene on reverse and heirs can lose the property through complications.

If a senior doesn’t have any debt other than their housing expense, they may be able to qualify for a Fannie/Freddie mortgage with SSI and take the cash out that they will need, and have low payments over time.

A 7YR ARM will offer a lower rate than a 30YR fixed but can be harder to qualify for. Depends on how much cash they need.

With a reverse OR F/F the debt remains upon death, but heirs wont lose the house as easily OR if a nursing home is involved.

[HLS]

Rich is correct about HELOCS being adjustable rates and reverse m’s are fixed, but the fees can be obscene on reverse and heirs can lose the property through complications.

If a senior doesn’t have any debt other than their housing expense, they may be able to qualify for a Fannie/Freddie mortgage with SSI and take the cash out that they will need, and have low payments over time.

A 7YR ARM will offer a lower rate than a 30YR fixed but can be harder to qualify for. Depends on how much cash they need.

With a reverse OR F/F the debt remains upon death, but heirs wont lose the house as easily OR if a nursing home is involved.

[HLS]

Rich is correct about HELOCS being adjustable rates and reverse m’s are fixed, but the fees can be obscene on reverse and heirs can lose the property through complications.

If a senior doesn’t have any debt other than their housing expense, they may be able to qualify for a Fannie/Freddie mortgage with SSI and take the cash out that they will need, and have low payments over time.

A 7YR ARM will offer a lower rate than a 30YR fixed but can be harder to qualify for. Depends on how much cash they need.

With a reverse OR F/F the debt remains upon death, but heirs wont lose the house as easily OR if a nursing home is involved.

[HLS]

Rich is correct about HELOCS being adjustable rates and reverse m’s are fixed, but the fees can be obscene on reverse and heirs can lose the property through complications.

If a senior doesn’t have any debt other than their housing expense, they may be able to qualify for a Fannie/Freddie mortgage with SSI and take the cash out that they will need, and have low payments over time.

A 7YR ARM will offer a lower rate than a 30YR fixed but can be harder to qualify for. Depends on how much cash they need.

With a reverse OR F/F the debt remains upon death, but heirs wont lose the house as easily OR if a nursing home is involved.

[HLS]

Rich is correct about HELOCS being adjustable rates and reverse m’s are fixed, but the fees can be obscene on reverse and heirs can lose the property through complications.

If a senior doesn’t have any debt other than their housing expense, they may be able to qualify for a Fannie/Freddie mortgage with SSI and take the cash out that they will need, and have low payments over time.

A 7YR ARM will offer a lower rate than a 30YR fixed but can be harder to qualify for. Depends on how much cash they need.

With a reverse OR F/F the debt remains upon death, but heirs wont lose the house as easily OR if a nursing home is involved.

[bearishgurl]

[quote=HLS]. . . If a senior doesn’t have any debt other than their housing expense, they may be able to qualify for a Fannie/Freddie mortgage with SSI and take the cash out that they will need, and have low payments over time.

A 7YR ARM will offer a lower rate than a 30YR fixed but can be harder to qualify for. Depends on how much cash they need.

With a reverse OR F/F the debt remains upon death, but heirs wont lose the house as easily OR if a nursing home is involved.[/quote]

HLS, a F/F loan could take $4K or more to close. If the mom only needs a roof repair, paint, bathroom fixtures, bathroom floor, etc., she might only need a few thousand for these mat’ls. The rest is labor to install and elbow grease to clean up. Why pay to borrow money she doesn’t need?? If the heirs could get involved and help mom and perhaps contribute $1K to $2K each for these mat’ls and also get a copy of mom’s will and/or trust, this would be cheaper for everyone.

Maybe one heir who has the $$ but lives far away can visit and purchase the mat’ls and another heir who lives close and is handy could install the mat’ls or supervise them installed and do repairs or something like that.

This doesn’t seem like a case where mom needs a lot of $$ to fix these problems. This is just my .02.

[bearishgurl]

[quote=HLS]. . . If a senior doesn’t have any debt other than their housing expense, they may be able to qualify for a Fannie/Freddie mortgage with SSI and take the cash out that they will need, and have low payments over time.

A 7YR ARM will offer a lower rate than a 30YR fixed but can be harder to qualify for. Depends on how much cash they need.

With a reverse OR F/F the debt remains upon death, but heirs wont lose the house as easily OR if a nursing home is involved.[/quote]

HLS, a F/F loan could take $4K or more to close. If the mom only needs a roof repair, paint, bathroom fixtures, bathroom floor, etc., she might only need a few thousand for these mat’ls. The rest is labor to install and elbow grease to clean up. Why pay to borrow money she doesn’t need?? If the heirs could get involved and help mom and perhaps contribute $1K to $2K each for these mat’ls and also get a copy of mom’s will and/or trust, this would be cheaper for everyone.

Maybe one heir who has the $$ but lives far away can visit and purchase the mat’ls and another heir who lives close and is handy could install the mat’ls or supervise them installed and do repairs or something like that.

This doesn’t seem like a case where mom needs a lot of $$ to fix these problems. This is just my .02.

[bearishgurl]

[quote=HLS]. . . If a senior doesn’t have any debt other than their housing expense, they may be able to qualify for a Fannie/Freddie mortgage with SSI and take the cash out that they will need, and have low payments over time.

A 7YR ARM will offer a lower rate than a 30YR fixed but can be harder to qualify for. Depends on how much cash they need.

With a reverse OR F/F the debt remains upon death, but heirs wont lose the house as easily OR if a nursing home is involved.[/quote]

HLS, a F/F loan could take $4K or more to close. If the mom only needs a roof repair, paint, bathroom fixtures, bathroom floor, etc., she might only need a few thousand for these mat’ls. The rest is labor to install and elbow grease to clean up. Why pay to borrow money she doesn’t need?? If the heirs could get involved and help mom and perhaps contribute $1K to $2K each for these mat’ls and also get a copy of mom’s will and/or trust, this would be cheaper for everyone.

Maybe one heir who has the $$ but lives far away can visit and purchase the mat’ls and another heir who lives close and is handy could install the mat’ls or supervise them installed and do repairs or something like that.

This doesn’t seem like a case where mom needs a lot of $$ to fix these problems. This is just my .02.

[bearishgurl]

[quote=HLS]. . . If a senior doesn’t have any debt other than their housing expense, they may be able to qualify for a Fannie/Freddie mortgage with SSI and take the cash out that they will need, and have low payments over time.

A 7YR ARM will offer a lower rate than a 30YR fixed but can be harder to qualify for. Depends on how much cash they need.

With a reverse OR F/F the debt remains upon death, but heirs wont lose the house as easily OR if a nursing home is involved.[/quote]

HLS, a F/F loan could take $4K or more to close. If the mom only needs a roof repair, paint, bathroom fixtures, bathroom floor, etc., she might only need a few thousand for these mat’ls. The rest is labor to install and elbow grease to clean up. Why pay to borrow money she doesn’t need?? If the heirs could get involved and help mom and perhaps contribute $1K to $2K each for these mat’ls and also get a copy of mom’s will and/or trust, this would be cheaper for everyone.

Maybe one heir who has the $$ but lives far away can visit and purchase the mat’ls and another heir who lives close and is handy could install the mat’ls or supervise them installed and do repairs or something like that.

This doesn’t seem like a case where mom needs a lot of $$ to fix these problems. This is just my .02.

[bearishgurl]

[quote=HLS]. . . If a senior doesn’t have any debt other than their housing expense, they may be able to qualify for a Fannie/Freddie mortgage with SSI and take the cash out that they will need, and have low payments over time.

A 7YR ARM will offer a lower rate than a 30YR fixed but can be harder to qualify for. Depends on how much cash they need.

With a reverse OR F/F the debt remains upon death, but heirs wont lose the house as easily OR if a nursing home is involved.[/quote]

HLS, a F/F loan could take $4K or more to close. If the mom only needs a roof repair, paint, bathroom fixtures, bathroom floor, etc., she might only need a few thousand for these mat’ls. The rest is labor to install and elbow grease to clean up. Why pay to borrow money she doesn’t need?? If the heirs could get involved and help mom and perhaps contribute $1K to $2K each for these mat’ls and also get a copy of mom’s will and/or trust, this would be cheaper for everyone.

Maybe one heir who has the $$ but lives far away can visit and purchase the mat’ls and another heir who lives close and is handy could install the mat’ls or supervise them installed and do repairs or something like that.

This doesn’t seem like a case where mom needs a lot of $$ to fix these problems. This is just my .02.

[HLS]

BG.
The OP didn’t mention what the dollars needed are.
It is possible to get F/F at zero cost, depending on the loan amount. 30 YR Fixed no cost loans are as low as 4.75% today.
I would rarely suggest a F/F unless at least $100K was needed, and may still not be worth it.

For a small amount, absolutley go the HELOC route.
If the family needs large money out for other purposes, that’s a different story.
I would not suggest a reverse for a small amount either.

I have worked with seniors who wanted to help their kids/grandkids out by refinancing. They understood the risks but wanted to help their family while they were still alive instead of watching them struggle until after they passed away.

There are some estate planning strategies that can be accomplished through refi’s as well. Just my 2c

[HLS]

BG.
The OP didn’t mention what the dollars needed are.
It is possible to get F/F at zero cost, depending on the loan amount. 30 YR Fixed no cost loans are as low as 4.75% today.
I would rarely suggest a F/F unless at least $100K was needed, and may still not be worth it.

For a small amount, absolutley go the HELOC route.
If the family needs large money out for other purposes, that’s a different story.
I would not suggest a reverse for a small amount either.

I have worked with seniors who wanted to help their kids/grandkids out by refinancing. They understood the risks but wanted to help their family while they were still alive instead of watching them struggle until after they passed away.

There are some estate planning strategies that can be accomplished through refi’s as well. Just my 2c

[HLS]

BG.
The OP didn’t mention what the dollars needed are.
It is possible to get F/F at zero cost, depending on the loan amount. 30 YR Fixed no cost loans are as low as 4.75% today.
I would rarely suggest a F/F unless at least $100K was needed, and may still not be worth it.

For a small amount, absolutley go the HELOC route.
If the family needs large money out for other purposes, that’s a different story.
I would not suggest a reverse for a small amount either.

I have worked with seniors who wanted to help their kids/grandkids out by refinancing. They understood the risks but wanted to help their family while they were still alive instead of watching them struggle until after they passed away.

There are some estate planning strategies that can be accomplished through refi’s as well. Just my 2c

[HLS]

BG.
The OP didn’t mention what the dollars needed are.
It is possible to get F/F at zero cost, depending on the loan amount. 30 YR Fixed no cost loans are as low as 4.75% today.
I would rarely suggest a F/F unless at least $100K was needed, and may still not be worth it.

For a small amount, absolutley go the HELOC route.
If the family needs large money out for other purposes, that’s a different story.
I would not suggest a reverse for a small amount either.

I have worked with seniors who wanted to help their kids/grandkids out by refinancing. They understood the risks but wanted to help their family while they were still alive instead of watching them struggle until after they passed away.

There are some estate planning strategies that can be accomplished through refi’s as well. Just my 2c

[Author]

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