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What Can She Borrow |
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Dear Edith: I read in our paper your column regarding 'reverse mortgages'. I, too, am at the age I would like to know more about this. I am almost 78 and would like to know if I talk to the people who have my mortgage or are there other places I need to talk to. I owe $42,000 on my house and it was appraised in 2002 at $150,000. Is the interest at the same rate as your original loan? Or is that decided by the mortgage company? I hope you can answer my questions as I hope to make a decision soon. |
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Excellent information, including a "how much could you borrow?" calculation, is available at AARP's web site www.aarp.org/revmort. I did a rough check there, taking into account your age and the value of your home, which is probably worth more than it was a few years ago. It looks as if you could borrow anywhere from $60,000 to $100,000. That would yield enough to pay off your present loan, and the debt would start with that $42,000 plus closing costs on the new reverse mortgage. Then you could decide whether you wanted to take a lump sum or receive monthly checks. The new mortgage would keep growing higher, including interest, with no payments due until you die or move out. |
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Edith
Originally published on September 11, 2005 |
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