A local CBS news segment shows a happy reverse mortgage borrower and explains how the loan can be used to stay at home.
For those who meet the 62-plus age requirement, are on a fixed income, and plan to stay in the home for a number of years, a reverse mortgage can be a good option, the CBS segment shows. But a reverse mortgage isn’t for everyone, the segment cautions.
“It’s not for people that are not going to stay in their home for two or less years,” said Jimbo King of McGowin-King Mortgage, LLC.
It’s also not for those looking for quick cash. It takes four to six weeks to get a reverse mortgage. In [borrower Christine] Wade’s case, it took several months.
Although closing costs are rolled into the loan, applicants are required to pay the appraisal fee.
Finally, if a senior dies or is forced to leave their home for a nursing home the loan is due in full. You have one year to pay it back.
For Wade, it’s been a win-win situation. After losing her husband of 51 years to lung cancer, she thought the dark clouds would ever go away. Thanks to a reverse mortgage, her financial worries are gone and her skies are sunny and clear once again.
“I feel comfortable,” she said. “I know now that I don’t have to do something drastic.”
Before getting a reverse mortgage, do your homework. It’s also advisable to choose a local mortgage company and check with the National Mortgage Lenders Association to ensure the company is legitimate.
View the segment.
Written by Elizabeth Ecker
