Pros and Cons of Reverse Mortgages

Pros and Cons of Reverse Mortgages,

Your house is paid off. Should it now pay you?

Julian and Jo Bell love their little yellow house in Union County, a home with 50 years’ worth of memories and comfort. So when money began to get a bit tight and the house needed repairs, the commercial Julian heard on TV sounded like the answer.

“I heard about reverse mortgages on TV and I thought, `Boy, that’s fine.’ ” said Julian Bell, 86. “The house is paid for. … The children didn’t want the house — they all had their own homes.”

The Bells got a reverse mortgage with Financial Freedom Senior Funding, a subsidiary of IndyMac Bank in Irvine, Calif. The loan lets them stay in the house, which will become the bank’s after they die or sell it.

After up-front fees and other loan costs, they paid off a $15,000 home equity loan and wound up with $48,000 to live on and keep up their house.

(more…)

Full post here Reverse Mortgage Loan Blog

Written by News & Feeds on December 24th, 2007 with comments disabled.
Read more articles on .