Is a reverse mortgage is a good or bad idea?

[sputnam]

I think you can probably back out of it if you want to, but the lender will still get a substantial amount of the equity if you try to back out early. You will have to pay some kind of penalty if you back out early.

Whether you back out at some point or it runs its course, the lender will get paid.

 

[Zoe]

Whether you back out at some point or it runs its course, the lender will get paid.

I don't know. I have done 1 or 2 for a lender. I try not get into business of homeowner and try to stay focused on the real property.

I would hate to see someone do it and then upset a family member and/or them regret it later and that is why I suggested like a real estate lawyer or certified accountant. The lawyer or accountant could could probably go to closing on the loan with any questions the borrower may have. They could at least be with the borrower before they signed the papers and answer questions for the borrower.

 

[Zoe]

The borrower was smart enough to ask the question here. The borrower has to realize that we are not experts in financial counseling or their legal rights and later ramifications if they regret it later.

We focus on an effective date. We don't look in what property will be worth when this person dies.

The appraisal will be done as of an effective date for the lender. We don't know when the borrower will die or what value will be then.