is a reverse mortgage a ripoff

Even as home values are falling (leaving seniors with less equity to tap), more than 112,000 reverse mortgage loans were made in 2008, up from about 22,000 in 2003, according to the National Reverse Mortgage Lenders association. monthly reverse mortgage loan volume is setting records too, with nearly 9,000 reverse mortgages made in May.

“Isn’t it time you started to enjoy retirement your way?” asks actor Henry Winkler in the television commercial for a San Diego reverse mortgage company. “It’s a government insured loan that turns.

As with the current rules, the proposed version of Part 419 encompasses the servicing of first- and subordinate-lien forward and reverse. mortgage statement or annual coupon book, annual statement,

what down payment do i need for a house How To Save For A Down Payment | Trulia – Before you can be approved for a mortgage, you’ll need a down payment. conventional wisdom suggests paying 20% of a home’s purchase price in cash upfront – known as the down payment. Your mortgage finances the remaining 80% of the purchase price.

It depends on your definition of a ripoff, whether or not a reverse mortgage makes sense for your financial goals and situation, and whether or not you get a fair deal from a reverse mortgage lender. I can’t say for sure if a reverse mortgage is a ripoff for you , but I can provide information about the program and let you decide for yourself if a reverse mortgage might be beneficial.

Here’s what you don’t see in the ads. Any existing mortgage as well as closing costs which can total $10,000 or more are added to the reverse mortgage. These initial costs plus any additional funds.

If all you did was listen to the TV commercials you would think that a reverse mortgage was niftier than sliced bread. But listen closely to some of the language used: "A government insured reverse mortgage".

Other scam artists charge money to seniors, sometimes thousands of dollars, for information about a reverse mortgage that is available free from the Department of Housing and Urban Development (HUD).

I do not believe that it is a ripoff but you should understand all the cost implications before you take one out. Typically the homeowner pays all the fees associated with setting up a reverse mortgage and the interest rates charged may be higher.

The study also found that some ads didn’t make it clear that a reverse mortgage is a loan; that ads made it seem like it’s impossible for a borrower to lose his home (not true); and that reverse.

social security home loans Using Social Security or Disability Income for a Mortgage. – Using Social Security or Disability Income for a Mortgage Social security and disability income can be used to buy a home or refinance. Many people mistakenly believe a job is required to get a mortgage but both these sources of income are acceptable.