Posted on 04/07/2017 11:00:44 AM PDT by Rannug
The devil is in the details. What are the fees to originate? What’s the interest rate?
If you can find a lender that does such a loan, see if they will let you look at a blank contract (w/no names/numbers). Read through that carefully and you will have your “warnings” to see if it’s worth it to you.
It also depends on your situation and your current finances overall. Don’t forget estate planning if you’re interested in that. If you have a cash value life insurance policy, you might be able to just use that.
If you have trouble doing the math yourself, hire a financial advisor. Not the BS ones you see on TV ads where you just go in and they try to sell you their mutual funds.
Someone who can look at all your numbers and goals that doesn’t have anything other than advice to sell.
Also consider medicare attorneys. In some situations, it’s best to sell off all assets.
Agree.
Maybe you can start a new company that issues reverse mortgages that don't generate a profit. You will probably dominate the market. < / sarc >
Depends upon your circumstance. I have one and I love it. I didn’t want to sell my home and I have no heirs. I used some of the proceeds to pay off all my debts and have no house payment, so I can now easily live on a small income. It took all the stress out of my life. The only rules are I have to occupy the house myself and notify them if I’m absent for more than 60 days, and I have to pay my property taxes. I can pay down the mortgage to $1 and keep the equity as an open line of credit if I want. I am not taking a monthly income from it but using the rest of the equity for emergencies only. If down the road I want to move, I can pay off the mortgage in its entirety, so no, you don’t have to live in the house the rest of your life.
Whoops left Fred out of the roster
Check your state laws, you could save much headache.
For example, if you are facing long care charges at a nursing home, and your state laws give you a few years back to sell your property, then you cannot really do anything if you did not.
For example, let’s say your state gives you 5 years to give it to your kids or sell it, and you did this 6 years ago. All is OK.
Now let’s say you give it to kids now. The nursing home can go to court and take it from your kids, sell it, and use the money to pay for the home.
Go see a lawyer. Know the laws.
This exact thing happened to a neighbor. He bought the land, the state came after him to seize it. He had to prove he was not colluding with the owners so they could get some cash and avoid paying nursing home bills. He paid dearly for legal fees he cannot recoup. But he did win.
I would do this. I did do this. Different circumstances.
I own outright home here in Texas. I got a HELOC to buy some acreage near Bandera. I also made some home improvements. I’ve got a better interest rate than I would getting a lot loan.
But. I’m repaying the principal balance at $500 each month to pay down as fast as I’m able to. No way am I only going to repay an interest only loan.
“Don’t do a reverse mortgage just sell the place and go rent somewhere. Then spend the money as you go.”
I’d echo that. You NEVER get something for nothing. Quite the reverse.
Horrible deal. Don’t do it. When you die they will instantly foreclose and your heirs will have to scurry to find the funds to fend off the lender. If they can’t get the funds fast enough your house will be taken for a fraction of its worth. Lots of great suggestions in this post as to alternatives. Easiest is sell out and rent.
Horrible deal. Don’t do it. When you die they will instantly foreclose and your heirs will have to scurry to find the funds to fend off the lender. If they can’t get the funds fast enough your house will be taken for a fraction of its worth. Lots of great suggestions in this post as to alternatives. Easiest is sell out and rent.
I would definitely get a reverse mortgage if someone was holding a gun at my head and said they would kill me unless I signed.
Otherwise no.
Not really, but what I could do is sell my expensive home and downsize to one I could afford, and keep the profit for myself.
Not really, but what I could do is sell my expensive home and downsize to one I could afford, and keep the profit for myself.
Thanks to all for your well thought out suggestions. I am going to go for an RM, with great caution; all situations are different.
Again, thank you all for taking the time to comment.
Rannug
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