Posted on: 01st Feb, 2010 01:29 pm
I CO-OWN MY DADS HOME THAT IS PAID OFF. HE NEEDS SPENDING MONEY TO REPLACE THE ROOF. WHAT ARE OUR OPTIONS TO GET MONEY? THE HOUSE WAS APPRAISED AT $233,000. THANKS STEEDA0011
If you can qualify for it, and don't mind the monthly payments, get the Equity Line. The fees are a lot lower then a Reverse Mortgage. But if you feel he's going to be around for a while, and will need more cash in the future for repairs and such, the Reverse Mortgage could be the better solution - especially if you get the Credit Line option. That's the most cost effective way of doing a Reverse Mortgage because you'd only be paying interest on the amount of equity thats been converted into cash. So the first cash you'd take out of the Credit Line would be used to do the roof. Then you'd leave the Credit Line alone until cash is needed for something else. And the nice thing about the Credit Line with Reverse Mortgages is that it grows. The growth rate is always half a percent higher then the note rate. There isn't another mortgage around that has that feature.