Q–I’m a widow who owns my own home, mortgage-free. The trust fund my late husband established for me 25 years ago will be exhausted after this year, and I will only have Social Security to live on. Since this will barely cover my monthly expenses, I’m wondering if getting a reverse mortgage on my home would be feasible. Do you have any suggestions?
A–A reverse annuity mortgage is a loan against your home that is not repaid until the home is sold or you die. These mortgages may be paid to a homeowner in monthly installments, as cash lump sums or a combination of the two.
Reverse annuity mortgages provide a way for homeowners to tap their equity for income without having to sell or move.
To learn more about reverse mortgages, consult the book “Your Retirement Nest Egg: A Consumer Guide to the New Reverse Mortgages,” by Ken Scholen. In addition to explaining how reverse mortgages work, the book contains a list of lenders in 48 states, with phone numbers, who make reverse mortgages.
The book can be ordered for $24.95 plus $4.50 shipping and handling by writing to: National Center for Home Equity Conversion, Suite 115, 7373 147th St. W., Apple Valley, Minn. 55124. Call (800) 247-6553 for credit card orders.
Q–I would like to get into real estate development and making mortgage loans. What would you suggest for informative reading on these subjects?
A–The basics of the mortgage business may be found in “Mortgage Lending: Fundamentals and Practices,” 2nd Edition, by Marshall W. Dennis. “Real Estate Development: Principles and Process,” by Miles, Haney and Berens, provides an excellent overview of the development business.
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Have a question about real estate? You can write to George Karvel in care of the Chicago Tribune’s Your Place section, 435 N. Michigan Ave., Chicago, Ill. 60611. Answers will be provided only through the column.
