Benefits of a Reverse Mortgage

READER QUESTION

Is a reverse mortgage the best way to go for my 84-year-old father?

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Bills.com Resident Expert
Dec 12, 2011
BILL'S ANSWER

A reverse mortgage is designed for people over the age of 62 who have equity in their homes and limited income. Therefore, a reverse mortgage could benefit your father.

However, if he is paying interest on the second note of $107k, it may make much more sense to get a loan on his paid off property worth $160k (which is only a 67% loan to value), and use the proceeds to pay off the first note. Then, if he still needs cash out, he can do a reverse mortgage on the townhouse. This will reduce the amount of his capital going to the lender on the $107 property.

Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

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