Have any of you taken or are considering taking a Reverse Mortgage ?
iam looking at that option and any feedback would be appreciated
13 replies (most recent on top)
I know someone it worked out for. He didn't have much money, didn't have anywhere else to move, no family, single, and didn't want to go somewhere he didn't know anybody. His property taxes were killing him and he didn't want to have to go back to work. The reverse mortgage worked for him until he passed away fifteen years later. Depends on your situation. If you love your home and don't have any heirs, it's worth looking into. I'm going to be doing it for myself at some point.
Tom Selleck might lie, I guess, but henry winkler ... Not the FONZ... and fred thompson, he was a DA on law and order... He would never jurk ya man. Those things must be GREAT!
I reversed my mortgage all the way down to zero. Own it free and clear now. Isn't that the whole point of buying a home?
Tom Selleck says they are a good thing. Just saw that a few hours ago. Would Tom lie to me?
It was simple for me. I looked one up online and used their little calculator and found out that I would only get pennies on a dollar. End of story. Do they think people are idiots?
Was 2007 so long ago that everyone forgot about these horrible lending practices?
The Reverse Mortgage is a niche business. It should be the last option you choose. The proliferation of advertisements on TV and other places have a lot to do with our longer life spans and seniors not having saved enough for retirement. A collision of old age and not enough money. We can all take a lesson from this and learn to live within our means, don't live up to the Jones', and saving more before retirement.
While I agree that selling the house and downsizing is a better option, Reverse mortgage may still benefit some folks who need cash , but also want to stay in their homes
Only get a reverse mortgage if you are completely desperate (e.g., about to be homeless) and have no other option.
Reverse mortgage... The question is why. If you young and looking for funds to get you through this layoff, that is the wrong mechanism to liquidate the equity in your house. If you do not want to sell and move to a rental (as suggested below, but which can have significant tax issues), just take out a traditional second mortgage. If you old and have outlived your savings, then a reverse morgage might make sense. They previously were a ripoff artists playground (like the old variable annuity), but I have read they are better these days. Before you go this route, do not ask here!, get a certified advisor...a few hundred now could have a lot of hurt later.
-azc, it's wasn't a joke. I just wasn't aware of those nice sites you mentioned. I mentioned under a "bridge somewhere" just to avoid buying land and having to pay property taxes. Thanks for the tip.
Under a bridge somewhere? There are plenty of beautiful lakeside campsites that some old folks live year round at and only pay a small rental fee in Northern areas of the country. Free Wifi, all sorts of stuff. Why would you live under a bridge? Is that some sort of stupid joke?
Before doing a Reverse Mirtgage, I would rather sell my home and buy a double-wide mobile home and move it under a bridge somewhere.