reverse mortgages

Recently, I spoke with two neighbors here in Chevy Chase on the subject of reverse mortgages.  Two in one week is a lot, considering I hadn't ever spoken to anyone who was actually considering the idea.  So I decided to do some investigation about the product and get ready with some referrals of competent and solid loan officers who are able to explain it well.

I have one referral ready and will have another one in another day, I expect.

Basically, it is a loan that someone who has a lot of equity in his/her house can take out, either in lump sum or in a monthly payment to allow the owner to remain in his/her house.  In fact, in order to qualify for this loan, the owner has to be living in the house.  There is a cap on the amount of money the bank will loan, and there is an interest rate, which can rise or fall. Presently, as the market rates for mortgages are down, it may be a good time to "refinance."  Obviously, this idea is a bit different than other loans on real estate, so there are a host of caveats that will accompany this essay.  The first and most important is to speak with your financial advisers, your tax experts, and legal help.  I will have a brochure for anyone who is interested.  Just give a call at 301-980-4085 or email me at timothy.healy at longandfoster.com