Reverse Mortgages
- Thread starter ginwoman
- Start date
hitchicken
Active Member
IMHO…
Not for everybody except in particular circumstances.
If you have a relatively large equity in your home. (Otherwise, ain’t worth it or you might not get approved.)
If you have no one in your family or close circle you want to leave your home to.
If no one wants your house after you’ve departed (except for the cash it will bring when sold.)
You don’t plan to move.
You must keep your house up.
You must keep it insured.
You must pay property taxes.
You must claim it as your primary residence and live in it for a specified amount of time each year.
If you desperately need the money.
If you have a better use for the money than keeping it as equity in your home.
Depending on the type of reverse, you can take a lump sum, a credit line (which will earn some interest on unused portion), or monthly/weekly payments… or some combination of the 3. The money is tax free.
It’s a terrible interest type of loan and once it starts, you’re not likely to every be able to ‘pay it off’ and keep your house for sale when you pass. (Unless you hit a major lottery jackpot somewhere.)
You can live in it until you die. But then you have to leave. The reverse mortgage company will sell it for what you owe in the reverse. They can’t get any more.
If you live long enough, more may be owed than your house is worth. Tough toenails for the mortgage company. They can’t attach any other ownings.
I got one and I love it. I was lucky. I got it just before the housing market bubble burst in 2008. The result was my initial interest rate was less than one percent. So I took the lump sum and put it in the market. Even today my rate is just a little over 4%. They won’t make that mistake again so beware!
Not for everybody except in particular circumstances.
If you have a relatively large equity in your home. (Otherwise, ain’t worth it or you might not get approved.)
If you have no one in your family or close circle you want to leave your home to.
If no one wants your house after you’ve departed (except for the cash it will bring when sold.)
You don’t plan to move.
You must keep your house up.
You must keep it insured.
You must pay property taxes.
You must claim it as your primary residence and live in it for a specified amount of time each year.
If you desperately need the money.
If you have a better use for the money than keeping it as equity in your home.
Depending on the type of reverse, you can take a lump sum, a credit line (which will earn some interest on unused portion), or monthly/weekly payments… or some combination of the 3. The money is tax free.
It’s a terrible interest type of loan and once it starts, you’re not likely to every be able to ‘pay it off’ and keep your house for sale when you pass. (Unless you hit a major lottery jackpot somewhere.)
You can live in it until you die. But then you have to leave. The reverse mortgage company will sell it for what you owe in the reverse. They can’t get any more.
If you live long enough, more may be owed than your house is worth. Tough toenails for the mortgage company. They can’t attach any other ownings.
I got one and I love it. I was lucky. I got it just before the housing market bubble burst in 2008. The result was my initial interest rate was less than one percent. So I took the lump sum and put it in the market. Even today my rate is just a little over 4%. They won’t make that mistake again so beware!
ginwoman
Well-Known Member
You are a wealth of knowledge. Stinks that it has to be your primary residence. Its funny how you said "You can live in it until you die. But then you have to leave".
Is there a reverse mortgage agent you recommend?
hitchicken
Active Member
Sorry, but no. My agent back in 2008 was just wonderful, but she is now running for political office. I don't know any others.
If you get a reverse, the mortgage company will periodically send you a form letter questionnaire asking if you're living in the house. Make of that what you will.
Really mean rev mort companies will send a form asking if you're still alive. Never, ever check the 'NO' box.