Your One Stop Resource for Saving Money.
Reverse Mortgage Question - The Bills.com Blog
Bills.com Blog > Mortgage Questions > Reverse Mortgage Question
Reverse Mortgage Question
Friday, Dec 12, 2008
Question: My mom has approximately 60000.00 in credit card debt. She is 80 years old and has no mortgage on a 80-90 thousand dollar house. She has approx. 15 thousand in the bank. These credit cards are maxed out and are beginning to eat into her savings. Question? Should my mom get a reverse mortgage , which would be about 55 thousand, and pay off her credit cards
Answer: Thanks for your question.Yes, a reverse mortgage might be the right solution for your mother. If she uses the entire $55K loan amount to pay off the credit cards, you'll wipe away that entire debt and she'll be free off those payments. However, keep in mind that she'll be using a large amount of the equity in her home and will not likely be able to use any additional equity should something come up in the future.
She won't need
to make any payments on the reverse mortgage, but when she moves or passes or away, the reverse mortgage lenders will own use the proceeds from the sale of the home to pay off the reverse mortgage and collect their interest. This means that as an heir, there will likely be little value left in your Mom's home. Let us know if this is helpful and start your search for a reputable reverse mortgage lender here: Get a Reverse Mortgage
She could also
She could also
simply pursue a traditional refinance and try to use the proceeds to pay off the loan, but if she has no cash flow that might be difficult for her to deal with.
She could apply for both and then decide after speaking to a few qualified Reverse Mortgage Loan Officers what is right for her:
Mortgage Refinance Quote
Reverse Mortgage Quote
I hope this helps to answer your reverse mortgage question, and I wish you the best of luck.
Thanks!
- Bills.com
She could apply for both and then decide after speaking to a few qualified Reverse Mortgage Loan Officers what is right for her:
Mortgage Refinance Quote
Reverse Mortgage Quote
I hope this helps to answer your reverse mortgage question, and I wish you the best of luck.
Thanks!
- Bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
User Comments
Submit questions/comments about this post:
Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
Information provided by Bills.com is for general informational purposes only and is not be
construed as legal, financial, bankruptcy, tax or other professional advice. Should you
require more detailed information or specific professional advice tailored to your situation you
should consult an attorney, financial planner or tax advisor.
While we believe all information provided by Bills.com to be accurate as of the date of its posting, we cannot ensure its accuracy. Use of this site and any information contained on or provided through this site is provided without any representations, warranties or guarantees. Bills.com is not responsible or liable for any decisions or actions anyone may take based on the information provided. Please see Terms of Use.
While we believe all information provided by Bills.com to be accurate as of the date of its posting, we cannot ensure its accuracy. Use of this site and any information contained on or provided through this site is provided without any representations, warranties or guarantees. Bills.com is not responsible or liable for any decisions or actions anyone may take based on the information provided. Please see Terms of Use.
© 2006 - 2009Bills.com LLC. All Rights Reserved.
1. Posted by Mortgage on Tuesday 16th December 2008 12:34
A reverse mortgage can be a confusing concept. It's helpful to have information like this that can help.
2. Posted by Deborah on Friday 19th December 2008 18:16
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often. Deborah
3. Posted by M haifter on Monday 20th July 2009 18:44
If a married couple have an existing reverse mortgate loan, they decide to get a divorse, do the original rquirements change or what happens to this reverse mortgage. Who gets what. Who is responsible for the payback. Can the person who gets control of the property continue with the loan. What happens if there is a new wife?
4. Posted by Bill on Tuesday 21st July 2009 09:28
Family law varies by the state. There are general guidelines for community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin) which vary from the other jurisdictions. Since I don't know if you are in a community property state or not, it's impossible for me to give you general guidelines. Keep in mind that divorce settlements can be fact-specific, so "who gets the mortgage and who gets the property" types of questions can vary from couple to couple even in the same state.