Is a reverse mortgage any good????

[Cranky]

Did one after my last wife took all the money and not much else. So far, this house has survived 2 X's and I'm into my 3rd. Was prepared to live the rest of my life single before this crazy woman came into my life about 6 years after my divorce lol. All I can say is that....I'm happy!! I'm thinking that I may have posted something similar awhile back? Anyways, we will celebrate one year of marriage in a few days and I love it!

 

[Cojohnso1]

I think it's a decent option, but for a specific demographic. Obviously older, and established residents that plan to stay put for seeable future. Of course health and Healthcare needs does eventually dictate the future. If it's end of life? Then property financing is lower on priority.

 

[Richard Cranium]

Apparently, Cranky's still getting some stank on his hang low.

 

[Fran Blacker]

Don't they take a lot of money upfront off the value of your house. You said you had one how did it work?

 

[Mopar Hunter]

Congratulations on your one year Anniversary.

 

[Richard Cranium]

Don't they take a lot of money upfront off the value of your house. You said you had one how did it work?

Cranky obviously got distracted by sex to not answer. Either that or he’s losing his marbles.

 

[Bee1971]

Age 62 and older - Interest rate and fees are added per month to the reverse mortgage

So the question of the day is - What those rates and fees are ?

Obviously the reverse mortgage must be paid once you kick the bucket , so the house goes up for sale


So what happens if you die early ? And have no kids or loved ones or dogs or fish and you have a reverse mortgage

 

[69 Sleeper Bee]

The only reason to get one is if you have no kids or family or anyone you want to leave anything to.
And don't outlive the term or you'll be out on the street renting or back in a mortgage at whatever the going days rate is.

 

[Cojohnso1]

The only one that I knew that had a reverse mortgage was an elderly lady. Who didn't tell her kids. When she passed and they moved in to pick apart her belongings, they were not happy on the house situation. I think the old gal got final last laugh. As she supplemented her retirement and some travels expenses from the equity of her house. I knew her son, and he said she did that out of spite? I reminded that you and brother and your sister were not very close in her older age. Don't blame her one bit to look out after herself.

So it can make sense for some.

 

[Jerry Hall]

Personally I can't justify financing something that I worked so hard to pay off. There are pro's and con's to everyone's personal situations and needs. I paid my house off in 1998, just 8 years after we moved in and retired the same year from my 8-5 job. Having no mortgage has afforded us a lifestyle that we would have never had with a 30 year mortgage. Health issues are starting to affect both of us and may make future decisions harder, but when we built this house it answered our dreams. I was fortunate to have a full time job and 2 buissinses for income that allowed me to pay a 10 year mortgage off in 8 years.

On the other side of the coin, I have one stepson that is the only one with any right to inherit any of what we have acquired, and I'm afraid he doesn't have a good enough job to even pay taxes on this place and eat too. So thinking about it this way, why not get a reverse mortgage for all we can get, and when we pass, they own the place. My understanding is that you don't have to make regular payments and that it comes due when you pass or leave the home. So which direction?

The subject has been brought up here, so I'm anxious to hear other opinions. Maybe there's a better way that I'm unaware of.

 

[440 4 speed]

Personally I can't justify financing something that I worked so hard to pay off. There are pro's and con's to everyone's personal situations and needs. I paid my house off in 1998, just 8 years after we moved in and retired the same year from my 8-5 job. Having no mortgage has afforded us a lifestyle that we would have never had with a 30 year mortgage. Health issues are starting to affect both of us and may make future decisions harder, but when we built this house it answered our dreams. I was fortunate to have a full time job and 2 buissinses for income that allowed me to pay a 10 year mortgage off in 8 years.

On the other side of the coin, I have one stepson that is the only one with any right to inherit any of what we have acquired, and I'm afraid he doesn't have a good enough job to even pay taxes on this place and eat too. So thinking about it this way, why not get a reverse mortgage for all we can get, and when we pass, they own the place. My understanding is that you don't have to make regular payments and that it comes due when you pass or leave the home. So which direction?

The subject has been brought up here, so I'm anxious to hear other opinions. Maybe there's a better way that I'm unaware of.

Suggestion. When the time comes hopefully a long way off. You might possibly have all the assets disposed of and put into some sort of a trust fund paying a certain amount of per month until the money runs out. I don’t know the real terminology. Like a pension.

 

[MarPar]

 

[dadsbee]

There'll be enough vultures after we kick the can, no need to invite them in early...

 

[kiwigtx]

There'll be enough vultures after we kick the can, no need to invite them in early...

And the number of vultures increase when you die....people you haven't seen for decades all of a sudden descend upon your assets to pick over the scraps.

I recently saw what happened to a young woman who was an only child and lived with her dying mother. When her Mum died late last year, a 'friend' who claimed she was promised all sorts of jewellery and cash helped herself to it in her capacity as 'trustee' and the daughter can't do a thing about it. The Police won't get involved....and it will cost a fortune in legal fees to get blood out of a stone.

 

[Triplegreen500]

My understanding is, a reverse mortgage pays you every month until you die or leave the home to the bank. It's not a lump sum - that would be a HELOC or a cash out refi. If the payout reaches the value of the home, payment stops but you are not evicted...you get to live out your days there, but the bank takes the home when you die. I'd suspect there's a "buyout" option where your family could buy it back, but I bet it carries quite the interest rate.

If you have no one to leave it to, and need cash every month, it could be an answer.

 

[Hey-O]

Personally I can't justify financing something that I worked so hard to pay off. There are pro's and con's to everyone's personal situations and needs. I paid my house off in 1998, just 8 years after we moved in and retired the same year from my 8-5 job. Having no mortgage has afforded us a lifestyle that we would have never had with a 30 year mortgage. Health issues are starting to affect both of us and may make future decisions harder, but when we built this house it answered our dreams. I was fortunate to have a full time job and 2 buissinses for income that allowed me to pay a 10 year mortgage off in 8 years.

On the other side of the coin, I have one stepson that is the only one with any right to inherit any of what we have acquired, and I'm afraid he doesn't have a good enough job to even pay taxes on this place and eat too. So thinking about it this way, why not get a reverse mortgage for all we can get, and when we pass, they own the place. My understanding is that you don't have to make regular payments and that it comes due when you pass or leave the home. So which direction?

The subject has been brought up here, so I'm anxious to hear other opinions. Maybe there's a better way that I'm unaware of.

What happens after you're gone is not for you to worry about Jerry. You have to many assets to worry about money. If people can't afford to keep up everything you have when you're gone, well then, everything goes and they can then start spending. Inheriting something is an honor for them, not a headache for you now. I've been downsizing for years, why, because I don't need it, not because it would've been a burden to the next in line. I downsized to give what I wanted to those so I can watch them enjoy it. I gave everything away. Houses and cash is a different story. I hadn't had a payment on a house in years, till I downsized. I borrowed everything but 20 percent on my new house. The interest rate was so stupid low it only made sense to borrow. In the last 4 years since I've moved in here, I've never made less than triple what the interest rate is, so the loan means nothing to me, interest on the loan means nothing to me, interest is deductible. My broker makes my payments, so that not a problem and the only thing that comes out of my portfolio is a house payment, I don't need it to live. When we're gone, if they can't make a 2,000 dollar payment on this place, the machine just keeps on going or they can sell it. I have just over 200,000 dollars equity in this place. My family doesn't know my net worth and if they can't make it on that, shame on them. They'll figure it out. I'm 69 and Theresa is 71. My only concern is that Theresa and I are comfortable right now, period.

 

[Cranky]

Don't they take a lot of money upfront off the value of your house. You said you had one how did it work?

I'm happy with it.....had the option to go lump, monthly or take what I wanted when I wanted. The appraisal amount surprised me (much higher than I figured) and the payout was around 65% or so iirc.

Age 62 and older - Interest rate and fees are added per month to the reverse mortgage

So the question of the day is - What those rates and fees are ?

Obviously the reverse mortgage must be paid once you kick the bucket , so the house goes up for sale


So what happens if you die early ? And have no kids or loved ones or dogs or fish and you have a reverse mortgage

The wife gets to stay in the house for 1 year after I kick off unless we redo the mortgage together with both our names on the paperwork.

The only reason to get one is if you have no kids or family or anyone you want to leave anything to.
And don't outlive the term or you'll be out on the street renting or back in a mortgage at whatever the going days rate is.

My term is I stay here until I die.

Personally I can't justify financing something that I worked so hard to pay off. There are pro's and con's to everyone's personal situations and needs. I paid my house off in 1998, just 8 years after we moved in and retired the same year from my 8-5 job. Having no mortgage has afforded us a lifestyle that we would have never had with a 30 year mortgage. Health issues are starting to affect both of us and may make future decisions harder, but when we built this house it answered our dreams. I was fortunate to have a full time job and 2 buissinses for income that allowed me to pay a 10 year mortgage off in 8 years.

On the other side of the coin, I have one stepson that is the only one with any right to inherit any of what we have acquired, and I'm afraid he doesn't have a good enough job to even pay taxes on this place and eat too. So thinking about it this way, why not get a reverse mortgage for all we can get, and when we pass, they own the place. My understanding is that you don't have to make regular payments and that it comes due when you pass or leave the home. So which direction?

The subject has been brought up here, so I'm anxious to hear other opinions. Maybe there's a better way that I'm unaware of.

If I hadn't done the reverse, I'd be living on the streets....

My understanding is, a reverse mortgage pays you every month until you die or leave the home to the bank. It's not a lump sum - that would be a HELOC or a cash out refi. If the payout reaches the value of the home, payment stops but you are not evicted...you get to live out your days there, but the bank takes the home when you die. I'd suspect there's a "buyout" option where your family could buy it back, but I bet it carries quite the interest rate.

If you have no one to leave it to, and need cash every month, it could be an answer.

Yes, you can do a lump sum with the reverse. Might be different for your state though.

 

[68BabyBlue]

Personally I can't justify financing something that I worked so hard to pay off. There are pro's and con's to everyone's personal situations and needs. I paid my house off in 1998, just 8 years after we moved in and retired the same year from my 8-5 job. Having no mortgage has afforded us a lifestyle that we would have never had with a 30 year mortgage. Health issues are starting to affect both of us and may make future decisions harder, but when we built this house it answered our dreams. I was fortunate to have a full time job and 2 buissinses for income that allowed me to pay a 10 year mortgage off in 8 years.

On the other side of the coin, I have one stepson that is the only one with any right to inherit any of what we have acquired, and I'm afraid he doesn't have a good enough job to even pay taxes on this place and eat too. So thinking about it this way, why not get a reverse mortgage for all we can get, and when we pass, they own the place. My understanding is that you don't have to make regular payments and that it comes due when you pass or leave the home. So which direction?

The subject has been brought up here, so I'm anxious to hear other opinions. Maybe there's a better way that I'm unaware of.

My sentiments are the same as Ulli's. Side issues are long term care, and passing on the car collection. My wife and I made arrangements for a top flight continuing care facility. A good chunk of our home equity will be used to fund the entrance fee. One reason I downsized to one old Mopar recently was the impending loss of my storage. I have one daughter, who like your stepson, has demonstrated limited ability to manage assets. I have a comprehensive estate plan that deals with this reality.

Your home equity could be used to finance long term care in your residence. A consultation with an elder law attorney would be a good first step to determining the most effective approach for your personal circumstances.

 

[Runcharger]

My opinion is I believe you'd be better off selling the place for 100% and renting something with the interest. As long as it works for you though.

 

[Cranky]

My opinion is I believe you'd be better off selling the place for 100% and renting something with the interest. As long as it works for you though.

I looked around and pretty hard to find another place that I could move into but the stuff that was on the market wasn't even close to what I needed. What I needed was a barndominium and everything that was available was pretty much close to what my house appraised for and the cheaper ones were junk. Then there's the 'new neighborhood' where you just don't know what's in it. I know what's in the neighborhood where I've been for over 41 years. After weighing all the facts, I feel that I did the right thing.