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Is getting a reverse mortgage a good idea?

Or is a home equity loan a better choice? by JLennon from Turnwater, Washington. Dec 12th 2012 Reply


Nicolas Amaro (NickAmaro)
#92 ranked lender in New Jersey - 23 contributions

It all depends on the individual circumstances. It might be the solution to a senior/homeowner with financial difficulties and facing foreclosure since there are no credit requirements to get approved for a reverse mortgage. A senior struggling to pay for real estate taxes and the possibility of losing their home, they can use it a reverse mortgage to pay back taxes and receive additional income to pay their taxes in the future.Proceeds can be used for a gift of cash to their grandchildren. There are many possibilities depending on equity and specific needs. A home equity loan will require certain credit score and income. Consult with your local mortgage broker. He will guide you and help you sort out the different options you may have.

Dec 12th 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,815 contributions

It depends on what you are trying to accomplish. One advantage of a Reverse mortgage is you have no payment requirements, but they are usually more expensive than an Equity Line (HELOC). A reverse mortgage will run until you move out, die or sell. HELOCs usually have a maturity date. To learn more, speak to a Certified Reverse Mortgage Specialist for specific details pertaining to your unique situation. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ Licensed in California and Arizona ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

Dec 12th 2012
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,259 contributions

The only one that can answer that question is you.. Since they both have very different benefits... the HELOC is good in the sense that you apply one time and you have unlimited access to your equity for the first 10 years or so. You will need to have good credit and sufficient income, but you only apply once.. With a HECM, credit is not an issue, good or bad... and you have options from pulling all your cash out, some cash out and small payments to you, or no cash up front, but larger payments to you.. but once you initiate the HECM, the only way to change the terms is to refinance, and pay the costs associated with the refinance... you should visit a local mortgage broker that deals with both these products and have him explain in detail how each one will work within your particular scenario.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Dec 13th 2012
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Jean-Michel Goupillaud (goup0148)
#665 ranked lender in California - 4 contributions

I think there is a great deal more that needs to be known about your situation in order to give you the best possible recommendation. If you would like to speak with an experienced professional please call 888-733-4224 and let the secretary know why you are calling and they will transfer you to a reverse mortgage specialist. Thank you. Pacific One Lending

Dec 12th 2012
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Lorne Harvey (lorneharvey)
#1 ranked lender in Washington - 426 contributions

Good Afternoon JLennon, I have done many reverse mortgages for clients. Please see my testimonials on our website. If I can be of assistance, I would be happy to spend the time with you to answer all your questions. I am licensed and do most of my business in the State of Wa.Regards,Lorne

Dec 12th 2012
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Fred Chamberlin (whidbeyloanguy)
#64 ranked lender in Washington - 8 contributions

I no longer offer reverse mortgages, so I don't have any personal benefit, one way or the other. A reverse mortgage may be the best thing you can do, it really depends on your circumstances and what you want to accomplish. If you like, take a look at the flow chart at http://oregonreversemortgageinfo.com and see what may be of assistance. Whatever you decide, make sure you get all of the information available. One thing that is required for a reverse mortgage is counseling, be sure and take it and pay attention. Good luck and if you would like a referral, give me a call.Fred

Dec 12th 2012
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Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,255 contributions

first we will need to discuss your age, your will and trust, and any health considerations, all that goes into a decision.. I have done numerous reverse mortgages, and i have had older parents, so i know the in and outs of medicare insurance, probate, the time frame of your property if you were going to a nursing home.. etc my parents for the last 11 yrs educated me hands on.. and they are both in heaven.. lindayourloanpartnerforlife@live.com is my email

Dec 12th 2012
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Augustus Bukowski (SeattleMortgageGuru)
#0 ranked lender in Washington - 7 contributions

It all depends on your specific financial goals and what resources you have available to you. I would be more than happy to discuss this in detail with you, should you choose to reach out with more specifics. I hope your questions have been answered and appreciate you seeking out answers for others that may be afraid to ask, or might stumble upon this forum while doing research.

Dec 12th 2012
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Mark Simon (mark.simon)
#9 ranked lender in Delaware - 83 contributions

As you can see from the other responses we need more info from you to responsibly answer you. Also by design the reverse program will require you to complete a one session independent counseling program to review all the pros and cons. Give me a call and we can quickly review the details Mark 302-449-7373

Dec 13th 2012
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Korene Clopine-Seaman (korene)
#69 ranked lender in Arizona - 85 contributions

Depending on your goals, income, age, and intension for the future.Yes, if you are 62 years of age and older, you intend to keep this home as your primary home for the remainder of your life.No, if you are not intending to keep this home or if you are less than 62 years of age. I am a Certified Reverse Mortgage Specialist and I would be pleased to help you and have you receive answers to all your questions.Korene L. Clopine-SeamanSenior Mortgage Originator / Team Leader / Mortgage Lender NMLS# 218520 AZ License # LO-0916745 CA License # DOC-218520Direct Phone: 623-340-0934 Fax: 623-218-1807eMail: korene@openmtg.com

Dec 13th 2012
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A reverse mortgage is an excellent idea " If " If there is a financial need or a want you want to take care off,that you can not do with your own resources and you don't want or can not handle amonthly paymen associated with a traditional mtg/loan.That need or want may be as simple as maintaining your life style due to changes in events in your life.It might be something of a more major nature. i.e. major purchase /trip or helping grdand kids thru college.From a accounting stand point a line of credit will be less expensive. But - it may not be the best fit your situation.Steve McLean, Bank of the Pacific , 10 year reverse mtg experience. Senior citizen.360 588 9383

Dec 13th 2012
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Paul McFadden (paul.mcfaddenmortgages@gmail.com)
#43 ranked lender in Washington - 45 contributions

I think a reverse mortgage can be worthwhile if you're older. Reverse mortgages at age 62 are not as good as if you're in your 70's for example. I think reverse mortgages can solve a problem. I've had clients who do reverse mortgages because they're not sure they're going to have enough income going forward. A home equity loan might be another alternative and the rate would probably be more favorable. But the rate can adjust up or down (it isn't fixed). Plus you have to make a payment in some form or another. A reverse mortgage has no payment (you are only responsible for your taxes and insurance). The key if you decide on doing a reverse mortgage is to involve your other family members (kids if you have any). We usually request a face-to-face meeting to make sure you understand all the nuances. Let me know if you have any other questions. I'm happy to help!Paul

Dec 13th 2012
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Peter Botros (PeterBotros)
#71 ranked lender in New York - 895 contributions

It depends on your goals. Get with a local loan officer to break down the differences for you. Good Luck!

Dec 13th 2012
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Raymond Denton (Raymond)
#11 ranked lender in Ohio - 224 contributions

Yes, a Reverse Mortgage is a good idea. And there are other good ideas out there too, so you should compare all of them and then decide which idea provides you with the best solution.

Dec 17th 2012
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