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    Reverse Mortgage

    Has anyone had any actual experience or heard any feedback regarding a reverse
    mortgage? Is it a good idea?
    Last edited by dyne; 07-20-2006, 10:16 AM.

    #2
    Reverse mortgages have to be applied to the specific facts and alternatives of each situation. Consideration should be given to closing costs, fees, interest rate, etc. as they pertain to various financing alternatives. I did one comparison a couple of years ago and we determined that a simple home equity line of credit was a more economical way to go. It has been my experience that reverse mortgages tend to have very high closing costs and fees compared to other financing alternatives but you need to run the numbers as they pertain to costs in your area.
    Last edited by jimmcg; 07-20-2006, 07:56 AM.

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      #3
      Can be a great tool

      The reverse mortgage can be a great tool for certain seniors. (the kids may not like it) For someoone on a fixed income that wants to stay in there home, make updates to home, or just needs cash and equity is all they have then a rm may be the way to go. They do have high closing cost but before you can get the loan you must go through a counseling session which cover the pros and cons. The senior can get either a lump sum payment or an annuity type payment schedule. They will never have to repay the loan if they continue to live at that property. It can actually be a life saver for some seniors.

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