# Tell me again about reverse mortgages...



## Helena (May 10, 2002)

I know I have heard that they aren't always a good idea. Any info from you all about them...


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## po boy (Jul 12, 2010)

Each situation is different.

How much you can obtain depends on your age, property value and property location. 

If all signers pass away, your heirs are given a reasonable time to sell or refinance into a new loan. Same applies if all signers have to go to a nursing home, you or a relative can refinance or sell the property.


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## po boy (Jul 12, 2010)

Try this reverse mortgage calculator to see how much you qualify for.

Here are some links to pros and cons..


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## Nevada (Sep 9, 2004)

Helena said:


> I know I have heard that they aren't always a good idea. Any info from you all about them...


Normally you can borrow around 40-50% of the equity in your home for a reverse mortgage. It has some good points.

* You don't have to make any repayments for as long as you or your spouse are alive.
* You can do anything you like with the money. Some people pay off their traditional mortgage with a reverse mortgage, which can significantly improve their standard of living.
* Qualifying is easy. You only need to show that you can keep up insurance and property tax payments.

But you also have to recognize that a reverse mortgage isn't free. The money has to be paid back with interest. It's just that it doesn't have to be paid back until the home is sold, usually after you're gone.

There are some realities that you'll have to understand.

* The reverse mortgage will result in a lien against your property to assure that the lender will get paid when the property is sold.
* Upon the sale of your home the amount borrowed PLUS any interest will be collected by the lender.
* If you were planning on leaving your home as part of your estate there may not be much equity left after taking care of the reverse mortgage.
* The home must be your primary residence. If you move, the loan is called-in and the home is sold.


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