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If he was 67, why did he owe so much on his original mortgage? What had he been doing the previous 30 years?! Most people at that age own their home free and clear. This sounds like someone with chronic money management problems, possibly.
If he was 67, why did he owe so much on his original mortgage? What had he been doing the previous 30 years?! Most people at that age own their home free and clear. This sounds like someone with chronic money management problems, possibly.
That's what I thought. Or as Mr. Money Mustache has said:
"In almost every tale of financial woe, the real villain is the victim’s Past Self."
I know two people who took a reverse mortgage. While it sounded great in the beginning fast forward 15 years and both absolutely hate it now. Borrowing against the equity is never a good idea and you're not going to change my mind in that. But if you feel it's a good idea for you go ahead and do it.
There are a lot of things you must meet while in a rm and if you can't the house gets taken.
The best idea is to have plenty of money so that you don't need to worry about stretching your resources as far as you can. Unfortunately, most people are not in that position.
I know two people who took a reverse mortgage. While it sounded great in the beginning fast forward 15 years and both absolutely hate it now. Borrowing against the equity is never a good idea and you're not going to change my mind in that. But if you feel it's a good idea for you go ahead and do it.
There are a lot of things you must meet while in a rm and if you can't the house gets taken.
Speaking in absolutes once again is foolish. Tapping equity can work very well in many scenario just as reverse mortgages can
Tell me all the things you must meet while in a Rm so it doesn't get taken away from you, please go ahead
Speaking in absolutes once again is foolish. Tapping equity can work very well in many scenario just as reverse mortgages can
Tell me all the things you must meet while in a Rm so it doesn't get taken away from you, please go ahead
Property taxes
Homeowners insurance
HOA
Any other obligations that you had to the property before the RM you still have as a homeowner. It does nothing to relieve payables.
Yeah you get some money. Which you can get in other ways that are less risky. But you go ahead and get your reverse mortgage
House is usually sold to pay off the RM
You could run into issues with SSI or Medicare. Funds retained could count as assets.
Interest rate compounds over the life of the loan.
Service fees.
Property taxes
Homeowners insurance
HOA
Any other obligations that you had to the property before the RM you still have as a homeowner. It does nothing to relieve payables.
Yeah you get some money. Which you can get in other ways that are less risky. But you go ahead and get your reverse mortgage
House is usually sold to pay off the RM
You could run into issues with SSI or Medicare. Funds retained could count as assets.
Interest rate compounds over the life of the loan.
Service fees.
Home owners is required for any mortgage. Property taxes and hoa dues would be required any mortgage or not.
Your list of things you have to do because of a rm or lose your house is pretty much non existent
If you have no heirs, why not? You can't take the house with you.
Even if you have heirs. What makes people think they HAVE to leave something to their spawn? It's not like the kids worked for it other than remaining alive...
Home owners is required for any mortgage. Property taxes and hoa dues would be required any mortgage or not.
Your list of things you have to do because of a rm or lose your house is pretty much non existent
Did you read about compounded rates and fees which can build well over the worth of the house? Or just chose to ignore it? What happens when you want to move closer to family. How about when the bank inspects and tells you that this that and the other needs to be repaired or they call in the loan? How about when some life changing event happens and you can't pay the taxes, and you can't sell because your house isn't worth as much and you blew through the money.
I have NEVER used my equity in my house or rentals for anything. And there is a metric ton of it. I rather sell cash out and move somewhere with a lower COL or if needed a retirement home.
These RM companies prey on peoples emotions and telling them you can stay in your house. Mom or dad can live out life with no worries while still getting money. Sounds great. It's a house. The memories are in your head. You're better off selling and moving to a lower COL area. Buy a annuity with the rest and prepare for retirement in other ways.
Why don't you tell me why RM is so wonderful and how great it is to get one?
Let's also not forget that if a borrower with a reverse mortgage moves out of the property (into a nursing home for instance for more than 12 months), the loan must be paid off. Hopefully the property is worth more at that point than the loan balance. I've seen this stinker come home to roost for an elderly person who thought she could continue drawing the monthly checks from the reverse mortgage after moving into the nursing home. Not so.
Did you read about compounded rates and fees which can build well over the worth of the house? Or just chose to ignore it? What happens when you want to move closer to family. How about when the bank inspects and tells you that this that and the other needs to be repaired or they call in the loan? How about when some life changing event happens and you can't pay the taxes, and you can't sell because your house isn't worth as much and you blew through the money.
I have NEVER used my equity in my house or rentals for anything. And there is a metric ton of it. I rather sell cash out and move somewhere with a lower COL or if needed a retirement home.
These RM companies prey on peoples emotions and telling them you can stay in your house. Mom or dad can live out life with no worries while still getting money. Sounds great. It's a house. The memories are in your head. You're better off selling and moving to a lower COL area. Buy a annuity with the rest and prepare for retirement in other ways.
Why don't you tell me why RM is so wonderful and how great it is to get one?
I didn't ignore anything but rather I was addressing some claims you made, the vast majority either apply if you have a mortgage or not or applicable to all who have a mortgage. Any mortgage company most likely call call the loan in various scenarios so it's not simply applicable to RM, if you also intend to move its not a great idea.
Rm can provide a cash flow source for those who never wish to leave their house. It's not for all but you are using your opinion as fact when it's not
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