Reverse Mortgage Loan Blog

EAST TEXAS– Seniors who need some extra cash for retirement may be living right there in the answer.

Experts say there has been a lot of confusion on whether reverse mortgages are a scam and who they benefit.

If it seem to good to be true, most people think it’s a scam.

For example, a mortgage company paying you to live in your own home.

It’s not a scam but what is called a reverse mortgage.

Kay Robinson with the Better Business Bureau in Tyler said, “It’s fairly new to peoples concept, it’s been around for a while, the concept has been slow to develop.”

Robinson says for a long time reverse mortgages have been misunderstood but are backed by the US Government.

Robinson say this type of loan is for seniors 62 and older.

The catch is you must be free and clear of your mortgage payments to get the loan.

Robinson said, “Some people don’t have retirement income, but if there home is payed for then all of a sudden there’s a little money coming in on a monthly basis to help you maintain your home and your lifestyle.”

Depending on what your home is worth, your age and the number of borrowers depends on how much money the bank will loan you.

And you get to decide if you want the money in payments or a lump sum.

So many ask, what happens when the homeowners pass away?

Robinson says the heirs are left with a decision.

Robinson said, “Your children still have got in your will the opportunity to own that home for themselves or sell it.”

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