• Question
  • with how the economy is right now and bad outlook for the future finances of big business is

    Asked by a 78 year old man from Long Branch, NJ on 7/10/2012

    WITH HOW THE ECONOMY IS RIGHT NOW, AND BAD OUTLOOK FOR THE FUTURE FINANCES OF BIG BUSINESS, IS TAKING OUT A REV. MORTG A GOOD IDEA. WILL WE BE SAFE IF THE COUNTRY CAN'T AFFORD TO PAY IT'S OBLIGATIONS AND BIG BUSINESS AND BANKS CAN'T FULFILL THEIR OBLIGATINOS TO US. WHAT HAPPENS TO US AND OUR HOUSE? I NEED TO KNOW WHAT HAPPENS. WILL WE STILL BE PAID WHAT WE WERE PROMISED? AND WHO WILL BE OBLIGATED TO GUARANTEE THIS PAYMENT?

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  • Categories: Your Life in Retirement, Reverse Mortgages, Politics and Policy

Answers

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  • Editorial 

    Editorial 
    NewRetirement

    San Francisco, CA

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  • While the fees and interest costs of Reverse Mortgage loans have been criticized, Reverse Mortgages are federally insured loans and are designed to help and protect seniors.

    As such, the real macro economic risks of a Reverse Mortgage are actually on the banks.

    When you secure a Reverse Mortgage, you use your loan proceeds to pay off your existing mortgage in full and can take any remaining dollar amount in cash and you retain ownership of your home and are allowed to stay there as long as you live. In this scenario, there is very little risk to homeowners for a Reverse Mortgage. You have increased your overall debt, but are not obligated to pay off that debt until you die or move out of your home. Therefore, the debt is usually paid off by the sale of your home -- but your debt obligation will never be more than the value of your home when you make the sale.

    You can estimate your loan amount with the Reverse Mortgage Calculator:
    --> https://www.newretirement.com/Services/Reverse_Mortgage_Calculator.aspx

    Or, locate a pre screened and federally licensed Reverse Mortgage lender here:
    --> https://www.newretirement.com/reverse-mortgage-marketplace.aspx

  • Login to rate this answer:   Answered on 7/12/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.