Reverse Mortgage

[Bill Tasker]

I understand the very basics of a reverse mortgage. But can someone tell me how much equity you are able to draw from? For example if you have a home valued at $200,000.00 (free & clear) and the youngest owner is 63. What percentage can you expect to take back? Thanks!

[CaptJohn]

I think I read 60 percent average but don't quote me on that.

[Bill-n-Brillo]

Info from the FTC on reverse mortgages:

Reverse Mortgages: Get the Facts Before Cashing in on Your Home’s Equity (http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea13.shtm)

.............and from HUD:

HSG (http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm)

Bill :)

[ssmith]

Our financial guy says to remember that you should only do a Reverse Mortgage if this is absolutley your last home. In other words it will no longer belong to you soooo if you need to move say... back north...you have nothing to sell... it now belongs to the bank.

[Bill Tasker]

Thanks for the feedback!

[shcisamax]

I am not sure unless they have changed it but I think if you sell the home, you can simply pay off what has been borrowed plus the interest and go on your merry way. The banks don't want you to do that but .....

[zcaveman]

I am not sure unless they have changed it but I think if you sell the home, you can simply pay off what has been borrowed plus the interest and go on your merry way. The banks don't want you to do that but .....

That is what it states in the link that Bill-n-Brillo posted. But if you read through the entire article it is more complicated than that. "Simply" is not the word that comes to mind.

PLease read the article.

Z