Talk:Reverse mortgage/Archives/2017

Commercial?
Seems factual and straightforward from a USA perspective at this time. 4/12/2014. — Preceding unsigned comment added by HodgeDR (talk • contribs) 19:31, 12 April 2014 (UTC)

This sounds like a commercial you would see on TV. What are the draw backs of a reverse mortgage?
 * fixed. -- ʀ6ʍ ɑ  ʏ89  01:31, 13 February 2006 (UTC)

-This is a common comment about Reverse Mortgages. But there are very few drawbacks. The biggest complaint is the cost, however almost half the cost is for the mortgage insurance that provides the safeguards put in place by HUD.

- Everyone is missing some valuable information / pitfalls. Let me explain:

1.) The Federal Governemnt does not automatically repay any loan deficiency, a lender can file to have any deficiency paid them via the Federal Government i.e. the FHA reserves the right to pay or not pay any shortfall

2.) These loans are extemely expensive for seniors and until regulated or limited more heavily I think they should be avoided i.e. upfront costs are absolutely too high!

3.) You may get 60% to 70% of your equity in monthly installments / payments but, you are also loosing equity in that the interest (you are not paying) is compounded on the back of the loan. Interest is paid on the principal balance (growing each month) but also compounded on top of interest on top of interest.  So, when you get to the end of the loan you may have given up 30% to 40% of your homes equity to obtain a fraction in a monthly payout / installment.  It would be wise for seniors to sell instead of taking on this risky loan program.

4.) Seniors / borrowers of Reverse Mortgages also get hit with a monthly fee.

I think the pitfalls need to be clearly listed here so that seniors can see all the facts. The fact is that they are only givin' the positives. — Preceding unsigned comment added by 170.135.241.45 (talk) 19:39, 5 July 2011 (UTC) There should be some discussion of the size of payments if one takes an annuity, and amount collected over varying lengths of time. 2602:301:7710:B570:61E2:2F41:2E77:6996 (talk) 19:30, 22 March 2017 (UTC)