88Nightmare
07-11-2008, 09:08 PM
Well, first off, let me start by saying reverse mortgages might not be the best thing in the world because you want to try to keep as much equity in your home as possible, but im aware of all this, so comments relating to that can just be sent to me in a PM if you absolutely must share them.
Anyway, my elderly grandmother and my mother were talking about her taking out a reverse mortgage to try to do some MUCH needed updating/renovating on her home. My grandmother, who lives in Northern New Jersey where land value is unbelievably high, her home in its current condition is worth somewhere in the ballpark of $500,000 to $750,000. Her house is 100% paid for and has 100% equity in it now. There are no loans, liens.....etc against the house/property. Her neighbors house, which is just about identical to hers but much much more updated, just sold for $800,000. While my grandmother is still in good health, we figured having a nice updated house would make her living conditions and quality of life a little better in her declining years, and, in the long run, the updated house would be worth more once, god forbid, the time comes to sell the house. Some updates would be a new roof, new siding, all new windows (2 story bi-level home), new front door, new garage doors, new carpeting, re-do all the bathrooms (which havent been done since the 70's), painting, update the furnace/central air and appliances. Also make sure the 1961 electrical in the house is up to date and following todays electrical code. So I suppose my questions would be... what companies offer reverse mortgages? Is there interest on them like a normal mortgage? Closing costs involved? What else has to be done to get a reverse mortgage.....i.e. a home appraisal...etc. Any help is greatly appreciated!
Anyway, my elderly grandmother and my mother were talking about her taking out a reverse mortgage to try to do some MUCH needed updating/renovating on her home. My grandmother, who lives in Northern New Jersey where land value is unbelievably high, her home in its current condition is worth somewhere in the ballpark of $500,000 to $750,000. Her house is 100% paid for and has 100% equity in it now. There are no loans, liens.....etc against the house/property. Her neighbors house, which is just about identical to hers but much much more updated, just sold for $800,000. While my grandmother is still in good health, we figured having a nice updated house would make her living conditions and quality of life a little better in her declining years, and, in the long run, the updated house would be worth more once, god forbid, the time comes to sell the house. Some updates would be a new roof, new siding, all new windows (2 story bi-level home), new front door, new garage doors, new carpeting, re-do all the bathrooms (which havent been done since the 70's), painting, update the furnace/central air and appliances. Also make sure the 1961 electrical in the house is up to date and following todays electrical code. So I suppose my questions would be... what companies offer reverse mortgages? Is there interest on them like a normal mortgage? Closing costs involved? What else has to be done to get a reverse mortgage.....i.e. a home appraisal...etc. Any help is greatly appreciated!