There are many types of reverse mortgages. But the major ones are: federally insured reverse mortgages, single-purpose reverse mortgages, and proprietary reverse mortgages. When the federal government provides insurance for the mortgage, it is called federally insured reverse mortgages. Single-purpose reverse mortgages, and proprietary reverse mortgages are financed by the agencies authorized by government, banks and financial mortgage companies. There are pros and cons for each of these mortgages. You need to consider them carefully before submitting your application.

There’s a lot of controversy on reverse mortgages – mainly because of interest rates and how it leaves surviving family members to pick up the pieces in the event of death.

I know financial institutions are pushing this – but the AARP warns against them becuase you are basically turning your home over to the bank after you die and any surviving familiy members have no say-so in the possessions and property.

Please do as much research as possible and talk to your immediate family about your choice. There have been reports of people owing the bank MORE than the home was valued at and the family was in financial hardship as a result –

Best of luck!

Get a financial adviser……..a good one………this is a very important move……….

If you are looking for a reverse mortgage to receive some much needed cash, you may want to look into a reverse mortgage wholesale loan. This is the perfect way for you to get a reverse mortgageagencies that sell reverse mortgage wholesale lender accounts. These agencies are the Federal Housing Authority, the Fannie Mae foundation and the Financial Freedom Cash Account.

Hud.gov and AARP.org have information.
You must be over 62 but the older the more you get.
The fees are high and interest is high but they are paid when you aren’t using the house anymore.
Getting one too young might restrict your ability to sell and buy another house if you find you don’t want to age in place because the loan is due on sale.
If you have used up your life savings and need the money they are a good deal, if you are leaving an estate of more than you have now it will cost your estate.
I am single without children so will consider them when I am in my last house if I run out of money.
They only loan on about 50% of the value of the house so the payments aren’t huge on a low value house but fees can cost over 15K.

A reverse mortgage is a really great thing if you have lots of equity in your home, and you don’t have very much liquidated cash to enjoy your retirement. My mother had a house paid in full in Santa Barbara, CA but was living off of social security checks. I helped her get a reverse mortgage loan from Financial Freedom. Then she was living life to the fullest until she passed away 6 years later. My siblings were livid when they found out she got that loan, because they thought she would eat up their inheritance. But she sure loved life those last years of her life, going to the off-track horse racing, bought a new car, new hi-def tv, remodeled her kitchen with Viking appliances. So, yes it can be a very good thing. But you must remember that it is basically selling your house slowly back to a financial institution. If my mom would have lived long enough, my brother and sister (and me) would not have inherited a dime, but that was ok with me.

Anyways, you can find some info and resources about reverse mortgages here:
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