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baleptious9

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Help HELP need get out reverse mortgage asap HECM ANY HELP??????
Took out 2012 with 393,439.50. mortgage no.1 paid off 160,000 and 160 lump sum given. Has gone to 507,312.37---. 23,332.10 interest last interest on DEC 2016 was 1998.12 I had asked if can take out more equity out last year. I WAS told did i pay anything on this reverse.I was shocked i didn't know had to pay back a reverse mortgage but was told if you paid interest each month the principal would not go up. and cant work will be 69 in June meanwhile lost rental. used money to fix rental and some other house repairs property taxes and bills for house. From January to October no rent .Finally rented in November. and only 2000. plus a small social security. June will be 69...the interest will go to 2000. for January statement. Being told by many i asked Don't sell and try to go to basement and rent OTHER apartment to get a second income and refinance to get out .IF i don't do something my equity will be eaten up by the interest in future. AND THE LOAN WILL BE TOO HIGH. if anyone has any other HELP . please advise. IF THERE IS ANYONE THAT CAN HELP ME with out my death. DEAR COMMUNITY NEED TO GET OUT OF THE REVERSE MORTGAGE BAY RIDGE BK. FANNY

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In reading up, I found the information below.  I have no personal knowledge of reverse mortgages. You might also wish to speak to a real estate attorney, and/or a mortgage professional.

Sell your home to pay off the reverse mortgage. A reverse mortgage provides you with cash in exchange for equity in your home, but you are charged interest on that cash until the home is sold to pay off the loan. This happens automatically when the borrower dies, but if you decide you are not going to be able to stay in the home long-term, you may want to sell the house to eliminate those interest payments and to cash in any remaining equity. This makes the most sense if you still have a substantial amount of equity left beyond what you owe on the reverse mortgage. If you do not have any equity left, paying off the reverse mortgage won't leave you with anything left over.

Take out a conventional mortgage to repay the reverse mortgage. In effect, this entails borrowing to repurchase the equity you have given up via the reverse mortgage arrangement. Since conventional mortgage rates are typically lower than reverse mortgage rates, this can work to your advantage in the long run. In the meantime though, you have to be able to both live without the regular income from the reverse mortgage, and be able to make the monthly payment on your new mortgage.

Dip into savings to pay off the reverse mortgage. If your plans have changed and you either want to preserve the equity in your home for your heirs or yourself, one option is to use some of your retirement savings to pay off the reverse mortgage. This will leave you with less to invest, but you may come out ahead in the long run if the interest on the reverse mortgage exceeds what you would have been able to earn on those investments. The key, though, is that your remaining investments must still be able to provide you enough money to live on.

Refinance to a more attractive reverse mortgage. Reverse mortgages can pay you cash periodically or all at once, and if you can find a substantially lower interest rate, it may be worth your while to use a new reverse mortgage to pay off the old one. Just be sure to factor any repayment penalties and refinance closing costs into your calculation. This probably does not make much sense if your current reverse mortgage balance already exceeds the value of your home, because since you don't have to repay more than the value of your home, any additional interest charges are a moot point from then on.

Just remember that there is generally going to be a cost to any transaction, whether it is initiating a reverse mortgage, selling your home, or refinancing. So, just because you can get out of a reverse mortgage if need be, you still should not enter into one lightly. If there is a good chance you may need to get out of it in the near future, the cost of getting in and getting out may not be worthwhile.

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