How do you calculate a reverse mortgage?

I’ll be honest with you, someone wanted to try that stuff on my god parents & then my parents…and I am glad they came to their senses & stayed clear of all that scheming BS….

If you really want some more info on this topic try to Google it & then make your own decision based on the facts rather then the rumors you might get from people including me…how’s that for honesty!?

Good Luck!

I think this a trick question, I may or may not be wrong, first off you have to be 62 yrs old , and to calculate the mortgage u first have to know the value of the property or and how much u put down so far the reverse mortgage basically is calculated on the percentage u put down divided by the total cost or the reverse way ? :)

It’s not a scheme — this is an actual method that a lot of people use to leverage the equity in their homes — done right, it’s quite effective method to get back from your property instead of selling it outright.

As to being having to be a certain age — I suspect this thought comes from the fact that a vast majority of people who use this method are retired, or otherwise in their senior years. To know for sure, where ever the idea will be actually tried, you’ll want to use the bank or where ever this is being done as the people to explain the rules properly.

Unless someone comes on here that does this for a living and has actual facts, anything questioned and answered here might not be correct, or completely accurate.

How to calculate it? Not sure. I can tell you a bit of info because my father has one out on my grandmother’s house. In essence, you sell your home to a lender, but you still get to live in it. They send out an appraiser and give you a certain percentage of the home’s value. That could be in monthly installments, one lump sum, or some combination of both. My father, for instance, got one big amount upfront and then a series of monthly payments after that. Once the last installment is made, this turns into a loan that has to be paid back. That can be done in regular monthly payments, or you can sell the home and keep whatever balance remains from the sale price and the amount you got for the reverse mortgage. In essence, people pay you for a home you already have, and you can continue living there as long as you know that in the end, you have to sell the home and pay off this loan you received. As for requirements, I think age or disabilities may be more in play than anything else. Credit can’t matter that much because both my father’s and grandmother’s are terrible. Income can’t matter much either because my 90+ yr old grandma is on a $900 a month fixed income. I for one think it’s a great program as long as you get all the facts ahead of time. The only problem is that it takes FOREVER to start seeing a cash flow. My father waited a good six months before he started to see anything come through, but that may have been due to complications in the account.
Of course, take the above with a grain of salt. It is essentially hearsay on my end, but I usually have pretty accurate ears :)