Friends of mine acquired a reverse mortgage (RV) and told me what a great deal it was for them. So, I looked into it and liked what I saw. I installed a solar system that produced all of our electricity needs, and I applied for an RV. The RV paid off the solar system and I chose to have the RV pay the homeowner's insurance and taxes. My wife and I are in our seventies and debt-free now. No mortgage, no utility, no insurance, and no property tax payments. Our children can still inherit the house, but one requirement of our RV was that we have to live in our house year-round. No vacationing in Arizona for 6-months but you can still vacation for several weeks if your choose to. There is nothing to be afraid of, and we have had our RV for five years now. Thank you for the service you provide and thank you for informing people about RVs as I believe it is a very good deal for seniors...
I'm 79, a divorcee, and applied for a reverse mortgage a few months ago, through Mutual of Omaha, I was told I had to come up with $8000.00. If I had $8k, I wouldn't need a reverse mortgage.
Not everyone qualifies for a reverse mortgage. It is not automatic. It depends on your age and how much equity you have in the property. Also whether a set aside for property taxes and insurance is required- that depends on a person's credit and to some extent income. So if there isn't enough equity in the home sometimes it is necessary to pay down an existing mortgage a bit so you qualify for a reverse mortgage. That is what happened to you. It is a mathematical calculation primarily based on equity in the home, a persons age, thus their life expectancy. If the numbers don't work increasing the equity, like for you paying 8k would make the numbers work and a reverse would be possible. With the recent increase in interest rates qualifications have tightened a bit, a person needs a bit more equity in the home than six months or year so ago. One of the main purposes of a reverse mortgage for many seniors is to eliminate a high monthly house payment so they can live more comfortably. On occasion a child or relative will pitch in the money to get the reverse to work. That person could be added to the deed as a joint owner after the reverse goes through so at death they would own the property so they could see it to get what they "loaned" back. Sometimes there are other legal "tricks" to solve the problem. Eric HELPS
I told Ken I was a Helps client, and he told me I did not qualify for a reverse mortgage. I forget the exact reason he gave, but maybe I will wait for a few years and rebuild my credit with the program you recommended and apply somewhere else.
hazard insurance is actually homeowners insurance you can read this quote: "Hazard insurance generally refers to coverage for the structure of your home only. Other kinds of damage will be covered by other coverages within your homeowners insurance policy. Hazard insurance doesn’t generally refer to the coverage that protects you for injuries incurred by you or your guests following an accident may be covered by liability coverage. The reason ‘hazard insurance’ is a common term is actually because of lenders. Your mortgage loan provider may require hazard insurance at minimum before they will issue you a loan, because that is the only portion of the homeowners insurance policy directly related to the home structure itself. This may create the misconception that hazard coverage can be purchased separately from homeowners insurance, which is not accurate. If your lender has specified that you need hazard or dwelling coverage, just know that generally purchasing a homeowners policy will satisfy their requirements."
i looked into it they told me my place isn't worth enough plus i have a very small mortgage i looked into the one that tom selick is on they said i'd have to put money on the table
Yes there is but remember with reverse there is no house payment. HELPS has other videos on our UA-cam channel that discuss this in more detail. Eric HELPS
I don’t have equaty in my house I’m low income and it’s been 13 almost 14 years old debt getting debt collectors trying to make me pay when my identity was stolen and then this company started after my identity was stolen from previous bill collections my social security number and name and loan was stolen in identity theft I shouldn’t have to pay a new company that really I feel is a rip off
Friends of mine acquired a reverse mortgage (RV) and told me what a great deal it was for them. So, I looked into it and liked what I saw. I installed a solar system that produced all of our electricity needs, and I applied for an RV. The RV paid off the solar system and I chose to have the RV pay the homeowner's insurance and taxes. My wife and I are in our seventies and debt-free now. No mortgage, no utility, no insurance, and no property tax payments. Our children can still inherit the house, but one requirement of our RV was that we have to live in our house year-round. No vacationing in Arizona for 6-months but you can still vacation for several weeks if your choose to. There is nothing to be afraid of, and we have had our RV for five years now. Thank you for the service you provide and thank you for informing people about RVs as I believe it is a very good deal for seniors...
Good info
I'm 79, a divorcee, and applied for a reverse mortgage a few months ago, through Mutual of Omaha, I was told I had to come up with $8000.00. If I had $8k, I wouldn't need a reverse mortgage.
Not everyone qualifies for a reverse mortgage. It is not automatic. It depends on your age and how much equity you have in the property. Also whether a set aside for property taxes and insurance is required- that depends on a person's credit and to some extent income. So if there isn't enough equity in the home sometimes it is necessary to pay down an existing mortgage a bit so you qualify for a reverse mortgage. That is what happened to you. It is a mathematical calculation primarily based on equity in the home, a persons age, thus their life expectancy. If the numbers don't work increasing the equity, like for you paying 8k would make the numbers work and a reverse would be possible. With the recent increase in interest rates qualifications have tightened a bit, a person needs a bit more equity in the home than six months or year so ago. One of the main purposes of a reverse mortgage for many seniors is to eliminate a high monthly house payment so they can live more comfortably. On occasion a child or relative will pitch in the money to get the reverse to work. That person could be added to the deed as a joint owner after the reverse goes through so at death they would own the property so they could see it to get what they "loaned" back. Sometimes there are other legal "tricks" to solve the problem. Eric HELPS
Closing costs + MIP can be quite high......rates now are too high to consider also my 2 cents
What a Great Video! HELPS and Eric Olsen are the best. Yes, this video answered all my questions.Thank You!
Great info for piece of mind! Thank You 👍
You are wonderful. Thank you for helping people.
Great information to know Thanks
This is very helpful information. I have been curious about RM's, and this was very useful to me. Thank you, Mr Olsen.
I told Ken I was a Helps client, and he told me I did not qualify for a reverse mortgage. I forget the exact reason he gave, but maybe I will wait for a few years and rebuild my credit with the program you recommended and apply somewhere else.
Great information Eric for everybody when they are making decisions for their future
This is really spooky . I’ve been thinking about a reverse mortgage and I thought of calling Helps to ask a few questions.
Very good information , can you use apply reverse mortgage if you own a Condo or just for houses ? ?
I have homeowners insurance for years on my house now my mortgage is wanting me to pay hazard insurance and why
hazard insurance is actually homeowners insurance you can read this quote: "Hazard insurance generally refers to coverage for the structure of your home only. Other kinds of damage will be covered by other coverages within your homeowners insurance policy. Hazard insurance doesn’t generally refer to the coverage that protects you for injuries incurred by you or your guests following an accident may be covered by liability coverage.
The reason ‘hazard insurance’ is a common term is actually because of lenders. Your mortgage loan provider may require hazard insurance at minimum before they will issue you a loan, because that is the only portion of the homeowners insurance policy directly related to the home structure itself. This may create the misconception that hazard coverage can be purchased separately from homeowners insurance, which is not accurate. If your lender has specified that you need hazard or dwelling coverage, just know that generally purchasing a homeowners policy will satisfy their requirements."
Thanks very good information. Will a reverse mortgage work for someone own there home with no mortgage?
Absolutely. It will provide a line of credit or extra income each month as the video explains. Eric HELPS
What is better, a RM or a home equity line of credit?
Do you have to pay the RM money back….how does that work?
i looked into it they told me my place isn't worth enough plus i have a very small mortgage i looked into the one that tom selick is on they said i'd have to put money on the table
Not everyone has enough equity to qualify for a reverse mortgage. Also increased interest rates have made it more difficult to qualify. Eric HELPS
Is there interest expense on Reverse mortgages?
Yes there is but remember with reverse there is no house payment. HELPS has other videos on our UA-cam channel that discuss this in more detail. Eric HELPS
My husband and I are going through foreclosure, do I need to make a payment on my 2nd mortgage.
You may want to call HELPS some question to ask and have answered. Eric HELPS
(totally off topic) Roger has a great beard.
agreed :)
I don’t have equaty in my house I’m low income and it’s been 13 almost 14 years old debt getting debt collectors trying to make me pay when my identity was stolen and then this company started after my identity was stolen from previous bill collections my social security number and name and loan was stolen in identity theft I shouldn’t have to pay a new company that really I feel is a rip off