A Reverse Mortgage is known as a Home Equity Conversion Mortgage and abbreviated as HECM. This refers to a loan in which the lender agrees to lend a maximum amount within an agreed period. This differs from standard home loans (the heloc) because the borrower is giving up their home (they still reside there) in return for monthly payments, hence; reverse mortgage.
At first, a reverse mortgage sounds like a great idea, but you or your parent(s) may actually be falling for a scam.
The housing market is bad right now and rather than try to sell your house, a reverse mortgage (selling your house to the bank) seems attractive to most; what you’re not seeing is that many mortgage companies will pay you a monthly amount that doesn’t begin to add up to the real worth.
You spend your life trying to pay off your mortgage, and just when you do, some shady con-artist is there ready to take your home and more using a reverse mortgage. Some of the safest reverse mortgages are HUD/FHA reverse mortgages, but in general, it’s better to focus on 401k planning and long term retirement rather than wait and attempt a reverse mortgage.
At first, a reverse mortgage sounds like a great idea, but you or your parent(s) may actually be falling for a scam.
The housing market is bad right now and rather than try to sell your house, a reverse mortgage (selling your house to the bank) seems attractive to most; what you’re not seeing is that many mortgage companies will pay you a monthly amount that doesn’t begin to add up to the real worth.
You spend your life trying to pay off your mortgage, and just when you do, some shady con-artist is there ready to take your home and more using a reverse mortgage. Some of the safest reverse mortgages are HUD/FHA reverse mortgages, but in general, it’s better to focus on 401k planning and long term retirement rather than wait and attempt a reverse mortgage.