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Benefits of a Reverse Mortgage

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

My father is 84 years old and has an outstanding note of $107,000 that he is paying $4,400 every 6 months for 2 years, then the note is due in full. He has no real way to repay this note, but he does have a townhouse that is paid off and worth about $160,000. I thought that a reverse mortgage would be something he should do, since I am not interested in inheriting from his estate, but would rather see him not worry about this note at his age. What are your thoughts?

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Bill's Answer
(7 Votes) | Find Learn Save

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. 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.



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  • PP
    Oct, 2012
    San Diego, CA
    If you cannot qualify for a mortgage product due to high credit card debt or bad credit, reverse mortgages can help with reducing credit card debt. Reduce credit card debt low enough to where you can afford your mortgage payment and so that its comfortable.
    0 Votes