Is a Reverse Mortgage Right for You?

I wanted to talk about some programs that are helpful to empty nesters.

I'm joined today by Barry Krevoy from Finance of America to talk about some of these programs. One of the most popular financing option for some older homeowners that are not just refinancing, but buying, is a reverse mortgage. It's a good options for people making $2,000 or $3,000 a month on a pension or social security. A reverse mortgage also makes sense for those who are downsizing.

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Reverse mortgages don't work like they used to.

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It's important to understand, Barry says, that reverse mortgages don't work the same way they used to. They are FHA-insured loans, and when you make a payment, the interest gets tacked onto the loan. There is no qualifying financially other than showing that you can make payments on the property taxes and insurance. If the homeowner passes away, the people who the home is left to have six months to either sell the home or refinance.

Then, of course, you have the extra money you're bringing in on a monthly basis to do things like pay bills or travel. Go to Europe or take the kids to Disneyland; the possibilities are endless.

If you have questions for Barry, you can call him at 949-735-4009 or email him at barry.krevoy@financeofamerica.com.

As always, if you have questions about buying or selling a home, feel free to give me a call. Let's talk soon.

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