Anyone here have a Reverse Mortgage? Perhaps you can

[yy4me]

give me some advice before I try to contact the company that wrote the one I have. First, let me say that although this type of mortgage is a help to some, it is unbelievably expensive to write and the monthly charges are absurd. Monthly interest is based on prime and seems compounded to me. I can't figure out if we are paying interest on the interest. The company in California that holds this mortgage never answers the phone to reply to request to contact me.

Our $30,000 reverse mortgage (inc initial fees and its initial use for the household repair is now $60,000. It may well be endorsed by AARP and God himself but think hard and long before taking out one. Our house was paid for but now has a $60,000 mortgage.

In light of the financial mess we are in, I am afraid of inflation. Interest rates go up, so does the rate I pay. Real Estate values are dropping like stones here. I will end up with no equity and nothing for my kids.

Since my husband died recently, all kinds of things have happened to make any kind of a lucid judgment about what to do in my situation. So far it has been over $2000.00 just to have a lawyer settle his estate, never mind things like funeral expenses, and it is not done yet. My problem is nothing compared to others but I'm now afraid, like millions of Americans. My bank account is very slim at the moment.

Last thursday I was laid off. See what I mean? Bad to worse.

What I would like to know, is it possible to turn this mortgage into a fixed rate instead of one based on Prime? Inflation can fluctuate and suppose it goes through the roof like it did during the Carter Administration. I will be wiped out.

Any thoughts would be appreciated. When the court gives me the OK, I will be seeing a friend who is a Certified Financial Adviser for guidance.

Perhaps someone here has thoughts too. I posted in another forum and got no reply, anyone here have experience with Reverse Mortgages(after the fact?)
Thanks

[CrispyQ]

1. I have no idea, but I'm responding to kick & mark.

Also, consider asking this question in the economy forum - there are lots of knowledgeable people over there.

http://www.democraticunderground.com/discuss/duboard.php?az=show_topics&forum=114

[DooWah]

2. What state and city do you live in?

1.  What was the date you took out the loan?

2.  Do they send you any statements or payment books?  This is
a good source of information.

2.  Look at the contract and see the interest rate they're
charging?

3.  What were the upfront charges (fees) and how much have you
withdrawn?

4.  What is the name of the company and what state and city
are they located?

5.  Did you call AARP and ask them for advice?


This seems expensive to me.  I've considered reverse mortgages
for my mother and declined (emphatically) because I thought,
at the very least they were ripoffs.

Sorry for all the questions but you're going to have to answer
these questions (and more) for you CFP.

I have some ideas as will your CFP but I think you're
ultimately going to have to see a lawyer.

[Crewleader]

3. yy4me...

you have my deepest sympathy for your lost of your husband.

I hope someone here can help you. :hug: