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should i get a reverse mortgage for my parents?

my parents are older and i want to know if i should help them take out a reverse mortgage? they want to do a lot of traveling and have mentioned wanting to help out pay for my kids college. what would i need to do to get a reverse mortgage for them thanks by danmaklan from Memphis, Tennessee. Jul 11th 2013 Reply


Robert Hanson (rhanson)
#42 ranked lender in Maryland - 637 contributions

Whether a reverse makes sense for your parents depends on the details of their situation. For some people it is a great tool and for others it does not make sense. I would be happy to discuss this with you if you wish. Email me at robert.hanson@vantagepointbank.comor on my direct line at 240-752-7549.

Jul 11th 2013
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Steven Cook (stcookmortgage@gmail.com)
#42 ranked lender in Washington - 256 contributions

Dan -- There are a couple things required to do a reverse mortgage. First of all both your parents would have to be over 63. Next they would haveto have some reasonable amount of equity in their home. Then they will need to contact a federally approved reverse mortgage counselor. After that,they need to talk with a local, licensed reverse mortgage officer.The amount available, and the manner in which they draw out the funds will be dependent on their age/equity and which reverse mortgage funds avail-ability program they decide to go with. You can help them through the process, but they will have to do the counseling session and sign all the documents.Be aware that if they are in their early 70's - they will probably only be able to get about 72% of the value of the property available to draw on, so if they have any mortgage, that will have to be cleared first from those funds before they draw out any other funds. There is usually about a 10% (give or take) setof fees that will have to be paid as well from the loan proceeds, so be sure to factor that in as well, in your initial considerations. Also, they will needto keep the property taxes and insurance paid up.I know it can work out well for those for whom it is the right move -- as I have seen with my mother-in-law's case.

Jul 11th 2013
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Dave Metsker (DaveMetsker)
#1 ranked lender in Oregon - 1,966 contributions

I am a full-time reverse mortgage specialist, and would be happy to discuss the various program options available. A reverse mortgage can be a good financial tool for your parents, as long as everyone knows both the advantages and disadvantages to your parents, and to you, and to your siblings, if any.Dave Metsker, 503-620-2239, primefinancial@frontier.com

Jul 11th 2013
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Team Best Mortgage Option (TeamBestMortgageOptionAtAmbassadorFundingLLC)
#32 ranked lender in New York - 1,959 contributions

You should reach out to a local mortgage professional who can provide all the information for you and your parents.

Jul 11th 2013
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James Barath (JamesBarath)
#1 ranked lender in Indiana - 335 contributions

A HECM (aka. reverse mortgage) can definitely put the gold back into your parents golden years and allow them to transition some of their home equity towards inheritance such as college tuition. Be advised that the loan-to-value that can be cashed out is calculated differently than a standard forward mortgage. Speak with a HECM Specialist to go through the finer details of a HECM and how it would apply to your parents. FYI: Take advantage while it's still available as they have scaled back the program in recent years.

Jul 11th 2013
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Rich Bonn (RichBonn2818411723)
#182 ranked lender in Texas - 35 contributions

A reverse mortgage is a great tool for retirement planning. Are your parents currently having cash flow shortages, or are they planning just in case. There are a few options for reverse mortgages, and depending on your folk's cash flow needs and their spending/saving habits, they need to be careful to choose the correct option. The first option is a lump sum distribution of cash. This can be a good option if they need a large chunk of money right now and will have adequate cash flow to live through their golden years. This should not be used for investments or to buy annuities. The second option is tenure payments, e.g., your folks will get monthly payments for the rest of their lives. The final option, should they just be planning for potential needs, is a line of credit option. I like this option if your parents are wise savers, because the unused portion of the line of credit will grow each year.It is important that you get the right reverse mortgage product for your folks, it is a great tool to help them enjoy their retirement, however, if you don't, it could become a nightmare for them.

Jul 12th 2013
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Manuel Gonzalez (mmortgage1)
#96 ranked lender in New Jersey - 85 contributions

Reverse Mortgages are great. If they want to keep the home, and at the same time not change their life style.My suggestion to you is shop around, many reverse mortgages can be expensive. Your best choice is to google search some local mortgage brokers (lenders are more expensive) research their reviews, and make sure you not working with someone with a bad reputation or that may end up over charging, or even not delivering.Another option is to ask a local realestate agent for their mortgage rep. Many times, a successful realestate agent has a honest hard working mortgage rep and they can provide you with a good experience because the referral came from their realtor.Good luck.

Jul 12th 2013
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Jason Vondrak (jvondrak)
#1 ranked lender in California - 1,461 contributions

If both of your parents are at least 63 years old and have built substantial equity in their home, then they might be able to qualify for a reverse mortgage. Contact a reverse mortgage expert in your area to see if they will qualify.

Jul 12th 2013
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Raymond Denton (Raymond)
#116 ranked lender in California - 222 contributions

First, don't listen to anybody that tells you the homeowners have to be older then 63 to qualify ... they don't know what they're talking about.60% of the Reverse Mortgages I've originated started with the homeowners Children. They came to me, learning about how the program works to determine if it's a good option for their Parents.The person who helps you with the Reverse Mortgage doesn't have to be local to you - you'll want to select somebody that's knowledgeable, has lots of experience, and is properly licensed. Visit my website, www.RaymondDenton.com , to learn some fundamentals, and call or email me with questions.

Jul 13th 2013
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James Barath (JamesBarath)
#1 ranked lender in Indiana - 335 contributions

A HECM (aka. reverse mortgage) can definitely put the gold back into your parents golden years and allow them to transition some of their home equity towards inheritance such as college tuition. Be advised that the loan-to-value that can be cashed out is calculated differently than a standard forward mortgage. Speak with a HECM Specialist to go through the finer details of a HECM and how it would apply to your parents. FYI: Take advantage while it's still available as they have scaled back the program in recent years.

Jul 11th 2013
0
1
James Barath (JamesBarath)
#1 ranked lender in Indiana - 335 contributions

A HECM (aka. reverse mortgage) can definitely put the gold back into your parents golden years and allow them to transition some of their home equity towards inheritance such as college tuition. Be advised that the loan-to-value that can be cashed out is calculated differently than a standard forward mortgage. Speak with a HECM Specialist to go through the finer details of a HECM and how it would apply to your parents. FYI: Take advantage while it's still available as they have scaled back the program in recent years.

Jul 11th 2013
0
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