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I am not a fan. My parents did one, without me knowing, and they got about 80% of value and the costs were astronomical
Kevin J. May
Hobe Sound, FL
i think they are good for the client to supplement their ss , i do not think they should take the lump sum they should get monthly payments ,just my opinion
good question Jack have a great day
I'm not a big fan.
Reverse mortgages are not for everyone, but in many situations it may be a great alternative to a "forward" mortgage. As a member of the National Counsel On Aging...the motto to "Use your home to stay at home" can not be more appreciate concerning the Reverse. Also, you can also PURCHASE you primary residence using a reverse.
The RM is a great program for a small % of people. The problem is, it's marketed much like pay-option ARMs were, as a solution for everyone - mortgage lenders DEFINITELY use the program the wrong way.
My opinion matters little but I look upon reverse mortgages the same way I do about derivatives, negatively! Sadly, there is a market for them both though.
Jack - Just like with any other mortgage, they can be beneficial if done the right way. They can also be detrimental as well. It all depends.
A commercial doesn't tell me if someone is being taken advantage of. I'm sure there are time when a reverse mortgage is a reasonable solution...and other times, when it's abused....just like every mortgage product!
They have become a specialty, and in some cases, a gimmick. Owner must have enough equity to qualify. I find that most sellers aren't really interested in them. But I have heard of a few cases where they worked well for sellers. Each case is different.
Properly used, a reverse mortgage can improve the quality of life for seniors.
Sadly, most real estate professionals have little knowledge of this product and are unable to identify the situations where a reverse mortgage should be considered.
I do believe my kids should get an inheritance and not a mortgage.
I agree with Raoul Loustaunau about the lump sum. For owners who need it they are a valuable source of funds that allow them to avoid selling.