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My Reverse Mortgage – How To Pay It Back

By Addison Jaggers

The repayment schedule can be the largest misunderstanding when it comes to reverse mortgages. The basic function of reverse mortgages can confuse family members when they are getting educated on this product.

A Reverse Mortgage is designed to NOT require repayment of the loan during the life of the client. Due to the client’s financial condition, they may begin making payments. For some individuals it makes perfect sense, but it is not mandatory to do so. I would like to describe to you one of these cases.

Towards the start of the year, I sat down with a past client who needed to refinance his condo loan. With him still in the work force and making a reasonable source of income. Both him and his spouse were 63 years old. There was some equity left in their condo, but the market had dramatically affected the appraisal value.

The main reason this gentleman wanted to refinance his loan or get money out of his property was to aid in his son’s education to graduate school. Due to the market situation, his age, his overall income and the value of his property, a forward mortgage refinance would not allow him to save any money monthly over what he was currently paying.

We went over in detail the foundation and characteristics of what a reverse mortgage could do for him and his situation. A wonderful feature of reverse mortgages is that you can dictate what you want to pay on a monthly basis. There was a time like this; it was called the 2000′s. Remember, “Pick Your Pay” and the myriad of other programs that allowed so many well-meaning people to get in over their head. ‘Just get the adjustable now and in five years, you can refinance – With the market doing so well, it won’t be a problem’ I think we all know how that story ends.

My client has the option of making a monthly payment or not because he chose a reverse mortgage. The first month, my client made a $125 payment. The next month, he was able to skip a payment entirely. A few months later, he picked up a new client and was able to make a $500 payment. The pressure of making a mortgage payment was not there. Are you feeling kind of stress? A reverse mortgage could be the answer for you.

If you would like to learn more or you’re just curious to see if a reverse mortgageis a viable product for you then contact me.

If you need more information then click this forMore information on reverse mortgages

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Article Citation
MLA Style Citation:
Jaggers, Addison "My Reverse Mortgage – How To Pay It Back." My Reverse Mortgage – How To Pay It Back. 1 Jul. 2010. uberarticles.com. 29 Dec 2014 <http://uberarticles.com/finance/mortgages/my-reverse-mortgage-how-to-pay-it-back/>.

APA Style Citation:
Jaggers, A (2010, July 1). My Reverse Mortgage – How To Pay It Back. Retrieved December 29, 2014, from http://uberarticles.com/finance/mortgages/my-reverse-mortgage-how-to-pay-it-back/

Chicago Style Citation:
Jaggers, Addison "My Reverse Mortgage – How To Pay It Back" uberarticles.com. http://uberarticles.com/finance/mortgages/my-reverse-mortgage-how-to-pay-it-back/


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