CBS Local News: Reverse Mortgages Work Well, With Caution

A local CBS news segment shows a happy reverse mortgage borrower and explains how the loan can be used to stay at home. 

For those who meet the 62-plus age requirement, are on a fixed income, and plan to stay in the home for a number of years, a reverse mortgage can be a good option, the CBS segment shows. But a reverse mortgage isn’t for everyone, the segment cautions.  

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“It’s not for people that are not going to stay in their home for two or less years,” said Jimbo King of McGowin-King Mortgage, LLC.

It’s also not for those looking for quick cash. It takes four to six weeks to get a reverse mortgage. In [borrower Christine] Wade’s case, it took several months.

Although closing costs are rolled into the loan, applicants are required to pay the appraisal fee.

Finally, if a senior dies or is forced to leave their home for a nursing home the loan is due in full. You have one year to pay it back.

For Wade, it’s been a win-win situation. After losing her husband of 51 years to lung cancer, she thought the dark clouds would ever go away. Thanks to a reverse mortgage, her financial worries are gone and her skies are sunny and clear once again.

“I feel comfortable,” she said. “I know now that I don’t have to do something drastic.”

Before getting a reverse mortgage, do your homework. It’s also advisable to choose a local mortgage company and check with the National Mortgage Lenders Association to ensure the company is legitimate.

View the segment

Written by Elizabeth Ecker

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  • Jimbo looked great.  He spoke well.  The widow did a great job.  The only trouble was the content was weak and misleading even the portion presented by Jimbo.  Other than content, it was great.

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