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If you're considering an ARM, you'll want to check out HSH's comprehensive Guide to Adjustable Rate Mortgages.

If you're considering an ARM, you'll want to check out HSH's comprehensive Guide to Adjustable Rate Mortgages.

Reverse Mortgages and Long-Term Costs

Q: I would like to get a reverse mortgage on my home (nothing owed on it) at a fixed rate for 15 years. Amount would be approximately $70,000. I am a 73 year old widow. Including interest, I would like to know how much my sons would have to pay off. I live in New York state. Thank you.

A: The value of your home and where your home is will determine how much you can borrow. Assuming you have $70,000 worth of available equity, and assuming an interest rate of 5%, the total amount to be repaid would be $99,640. You will need to complete a HUD-sponsored counseling program before you can get your Home Equity Conversion Mortgage (HECM), and you'll want to talk to a few mortgage lenders about interest rates and costs. There is word that HUD is considering making changes to their program in order to help lower the up-front costs, too.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
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