Today I'm going to talk about the Pros & Cons of a reverse mortgage...
Welcome to iReverse Home Loans, LLC
Debs Twitter FeedTweets by @ReverseMtgDeb
Welcome to my Reverse Mortgage website. My name is Deborah Nance and I am a Reverse Mortgage specialist. Let me start by saying there are many reasons to consider a Reverse Mortgage and many reasons why a Reverse Mortgage may not be right for you. I believe in no pressure conversations regarding a Reverse Mortgage. In fact, the fist time we meet I bring nothing to sign. Obviously I have passion for Reverse Mortgages. My favorite part of my job as a Reverse Mortgage Specialist is the feeling I get when we sign the final loan documents and we say, “bye, bye Wells Fargo” or “bye, bye Chase” no more house payments. Not everyone has a mortgage to pay off. In some cases I'm able to help supply cash flow to my clients. It makes a retirement that can be financially stressful a little easier to manage. A Reverse Mortgage can really help people have peace of mind and that makes me feel great. It changes their life and I’m happy to be a part of that. If you have any questions simply give me a call. I am happy to provide as much information as I can to help you make the right decision.
No front page content has been created yet.
Reverse Mortgage Pros and Cons
Reverse Mortgage Interest Rates
What is the interest rate on a reverse mortgage and how does it compare to interest rates on regular mortgages?
What is a Reverse Mortgage?
It sounds pretty good, maybe even too good.
Reverse Mortgage Closing Costs
How Much Does A Reverse Mortgage Cost?
What problems can a reverse mortgage solve?
The most common problem that a reverse mortgage can solve is the problem of a house payment that is causing havoc with a homeowners budget.
How Does a Reverse Mortgage Work?
You know the bank is going to make money on the Reverse Mortgage, right?
Reverse Mortage Scams
Be a smart consumer, do your homework!
Reverse Mortgage Calculator
First of all, if you value your privacy and hate telemarketing calls be very careful about filling out forms online that promise to send you reverse mortgage calculations.
Why I Love My Job
It changes their life!
My mom got her HECM reverse mortgage before I got into the reverse mortgage business. I didn't know she was thinking about getting a reverse mortgage, so it was a bit of a surprise when she and her husband called to get my opinion about the idea.
“Honey, you're the real estate expert in the family and you know about mortgages,” she said. “What do you think about these reverse mortgages?”
I explained that I’d been doing closings for reverse mortgages for a few years and thought they were a great financial tool.
“Well, we're thinking we need to do one,” said mom.
Both my mom and her husband had lost their spouses a few years prior, so this was a second marriage for both of them. They had both sold their homes in Orange County, CA and moved into a beautiful home on the lake in Temecula, CA that they purchased with cash.
Unfortunately, they didn’t do quite the due diligence they should have and were hit with some unexpected repairs after closing. For one thing, the place turned out to be completely infested with termites. My husband jokes that the only reason the house was still standing was because the termites were holding hands. You could literally put your ear against the wall and hear them crunching away. It was terrible! Adding insult to injury, they also discovered a roof leak in the family room.
Unfortunately, all those repairs ended up going on to credit cards. My stepdad didn’t want to have a mortgage, so he financed the repairs with zero interest credit card offers that would periodically come in the mail. They would pay down the card as much as possible until the zero interest introductory period ran out, then transfer the balance to another zero interest credit card.
The credit card juggling worked for a while, but it eventually became very stressful and frustrating. This wasn’t the retirement lifestyle on the lake my mom had envisioned. The reverse mortgage seemed like an ideal solution because it could eliminate the credit card headache once and for all and free up cash that could be used for more enjoyable things.
A HECM reverse mortgage is a type of home loan designed to give seniors 62 years of age or older access to a large portion of their home value without having to give up ownership of the home or take on a monthly mortgage payment.
As long as the required property charges (property taxes, homeowners insurance, HOA dues, etc.) are paid on time, no monthly payments are required and the proceeds don’t have to be paid back as long as at least one borrower is permanently living in the home.
The HECM reverse mortgage turned out to be an ideal solution because mom and her husband were able to tap into their home equity to completely clear the credit card debt and eliminate the financial stress and headaches it had caused. They were able to completely pay off the debt, retain title ownership of their home, and they weren’t stuck with a monthly mortgage payment to boot.
They initially qualified for a total pool of cash worth $160,000 and used $80,000 of it right away to clear the credit cards. This resulted in a huge monthly savings! Even if their minimum payments were just 2% of the total $80,000 combined balances, that meant they were able to eliminate around $1,600 worth of monthly expenses!
The remaining $80,000 they qualified for was left in a line of credit that would be available for future use. The great thing about the line of credit is that it grows larger automatically over time, giving my mom and her husband access to even more money in the future.
They’ve only had to tap into the credit line twice since they got their reverse mortgage and it’s now grown to over $100,000. They preferred not to have to tap into the line of credit, but it was ideal that they had it, because it made it possible to install a stair lift and make some additional roof repairs. They also enclosed the deck with a beautiful sun porch.
My great aunt always used to say that when her ship comes in, she’s going to travel and do fun things. My mom says the reverse mortgage was her ship. It came in and made it possible to not be burdened with huge credit card payments anymore. She and her husband were able to reduce their expenses so much that they were able to build up a nice travel fund. The reverse mortgage has enabled my mom to enjoy her life. I love seeing my mom have a great retirement.
"I am really glad I did this, it has been a really good thing." - Gloria Jacobson
"Debbie is the best and I would refer her to anyone, anytime!" - Mike Ryan
"I did promise a new wife that we would travel a lot, but there wasn't much cash there." - Red Jacobson
"For me it meant no debt..." -Alba Moesser