More on Reverse Mortgage Points

Posted by charles dennis

October 22, 2007

I have watched reverse mortgage points and fees decline in the most recent year but they are still the most expensive loan outside of private money for borrowers with standard credit and income. The Motley Fool, reports.

They’re not always a good deal. The points and fees they charge can be fairly high, and their interest rates can be considerably higher than those for regular mortgages. The cash flow you can expect from a reverse mortgage is determined by your home’s value, your age and interest rates. Those 62 years old or older, with little or no debt, stand to benefit the most from reverse mortgages. Loan programs vary widely in what they offer, so shopping around is critical. Retiring the debt usually means selling the home — often upon the death of the borrower — unless the heirs can cough up the repayment. Full Article