Video: Is a Reverse Mortgage Right for You? What You Should Know.

There’s a lot to consider when researching the pros and cons of a a reverse mortgage. This video gives you some basic facts about every reverse mortgage, so that you’ll know what questions to ask before you contact a mortgage lender. One other thing to note – the low interest rates of today may not apply to a reverse mortgage. Mortgage interest rates vary among lenders. Be sure to ask!

For your convenience there is a transcript of the video below.

Video Transcript: Is a Reverse Mortgage Right for You? What You Should Know.

Welcome to Today's Home Update. I'm Kelli. 

To reduce their chances of a savings shortfall, many older individuals are exploring 
reverse mortgage loans which enable homeowners aged sixty-two in older, to convert 
part of their home equity into tax-free cash.

Is a reverse mortgage right for you? Consider the following: 

LOAN FEES- borrowers are tasked with paying upfront mortgage insurance, origination 
fees and closing costs. It's critical to understand what fees you're paying. 

TAXES AND INSURANCE- with a reverse mortgage, seniors borrow money against equity 
and are not required to make loan payments. However they must still pay property 
taxes and homeowner's insurance. 
 
HOME MAINTENANCE- seniors are responsible for home maintenance, but cannot take out 
a home equity loan or second mortgage to cover repairs. 

HOME EQUITY- the borrower's home equity is reduced by the amount of the reverse 
mortgage. The estate will receive whatever equity hasn't been borrowed. 

LOAN REPAYMENT TERMS- the loan is due when the borrower sells or lives away from the 
home for 12 consecutive months, fails to pay property taxes or insurance or passes 
away. The principal, interest and closing costs are repaid from the proceeds of the 
sale. If heirs elect not to sell, the money is paid from the estate. 

Thanks for watching Today's Home Update. See you next time!

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