Reverse mortgages

bumpuser8448316

Is anyone familiar with these? If so, pleas explain it to me like I'm 5.

bumpuser8448316

Thanks. That's the understanding I have right now. Today someone told me that when you do a reverse mortgage you no longer own your home, the lender does. I'm trying to verify this

Hollylb3

From what I understand, if you're 62 or older, they offer you a price for your home and start paying it out to you in payments for up to 30 years. Generally they don't give you close to what it's worth, and when you die, it goes to the bank instead of your children or whoever would inherit it.

bumpuser8448316

MrsMuq said:

QueSyrah said:

Thanks. That's the understanding I have right now. Today someone told me that when you do a reverse mortgage you no longer own your home, the lender does. I'm trying to verify this

Further down on the page it says, "Reverse mortgage loan advances are not taxable, and generally don’t affect your Social Security or Medicare benefits. You retain the title to your home, and you don’t have to make monthly repayments. The loan must be repaid when the last surviving borrower dies, sells the home, or no longer lives in the home as a principal residence."

There's also the standard warnings against scams, predatory lenders, etc.

Thanks you! I'm feeling a bit overwhelmed and really appreciate you pointing that out.

bumpuser8448316

MrsMuq said:

You're welcome.

Every time I see the ads on TV with Fred Thompson promoting reverse mortgages, I always have thought they must be scams....

I know! Me too. When I heard they were doing a reverse mortgage I immediately thought scam