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Old 03-01-2012, 06:54 AM
 
Location: USA
1 posts, read 1,464 times
Reputation: 10

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Even throughout this downward economic twist, a reverse mortgage will let aging homeowners to benefit from the standard of living they envisioned for their retirement years that was rapidly vanishing. As a substitute of making a monthly mortgage payment every month to a bank, a reverse mortgage facility in “reverse” by paying the homeowner every month, based on the equity in the home.
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Old 03-01-2012, 05:14 PM
 
54,878 posts, read 57,241,554 times
Reputation: 35099
now tell everyone how the monthly payments are pretty small compared to the equity in the house, the costs are very high and you can end up signing away the house and still not having enough money to live on.
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Old 03-01-2012, 05:31 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
18,125 posts, read 33,599,337 times
Reputation: 16599
Reverse Mortgage benefits the underwriter, bank, title company, loan officer .... Not much benefit to the mortgagee.

A VERY costly and restrictive way to access minimal funds. JMHO (and LOTS of experience dealing with seniors who have been scammed into RM and other 'attractive' deals... Whole life Insurance, variable annuities..). The sharks and leaches should be shot.
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Old 03-02-2012, 02:39 AM
 
Location: Los Angeles area
13,862 posts, read 15,364,733 times
Reputation: 31288
The OP sure sounds like spam to me, but there is no contact info so I suppose technically it is not. I am not a great fan of reverse mortgages, but under certain limited circumstances I think they can make sense. If all the following conditions apply, then they make sense to me:

1. A retiree, or a retired couple, are house rich but cash poor (i.e., they have a paid off house but are having trouble with cash flow each month for food, property taxes, utilities, and the various other necessities).
2. They really want to stay in their house.
3. They don't care about leaving equity in the house to any heirs.

If they choose the option of receiving a monthly amount, then this payment will continue even beyond the point where the equity in the house has been "exceeded" by the payments provided that they pay their property taxes, maintain insurance on the house, maintain the house itself in reasonable condition, and continue to live in it.
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Old 03-02-2012, 04:05 AM
 
54,878 posts, read 57,241,554 times
Reputation: 35099
the big trap is that after the heavy fees and the fact that they only give you somewhere around 50-60% of your equity the payments may leave you with barely what you expected.

typically they pay you 2 ways.

first way is lump sum. with this method you could find you spent the money early in the game and now have no house equity and no money.

the 2nd way is they subtract your age from 100 and divide the money by those many years.

typically the amount after fees,interest and expenses are subtracted from the small amount they will consider as equity its barely enough to make it worth it.
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Old 03-03-2012, 07:34 AM
 
Location: Los Angeles area
13,862 posts, read 15,364,733 times
Reputation: 31288
Quote:
Originally Posted by mathjak107 View Post
the big trap is that after the heavy fees and the fact that they only give you somewhere around 50-60% of your equity the payments may leave you with barely what you expected.

typically they pay you 2 ways.

first way is lump sum. with this method you could find you spent the money early in the game and now have no house equity and no money.

the 2nd way is they subtract your age from 100 and divide the money by those many years.

typically the amount after fees,interest and expenses are subtracted from the small amount they will consider as equity its barely enough to make it worth it.
I must say I stand corrected. Let me modify my previous statement: Instead of saying that reverse mortgages make sense under certain limited circumstances, I would now say that the concept of reverse mortgages makes sense, but that the implementation of that concept leaves a lot to be desired.
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Old 03-03-2012, 08:00 AM
PDD
 
Location: The Sand Hills of NC
8,776 posts, read 12,945,876 times
Reputation: 11782
We took out a reverse mortgage a few years back when I had to go on permanent disability. It got us over the hump until we decided where to relocate for retirement.
Yes it was expensive with upfront fees but we didn't have much choice and I did not want to start withdrawing from my IRA prematurely.
Was it the best decision, who knows?

Right now we own our retirement home free and clear and If our retirement funds ever run too low we may again go for a reverse mortgage.
We have no plans in trying to leave a big inheritance for our children, we don't ask them for any help now and if there is anything left when we are gone it's theirs to split up.
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Old 09-15-2012, 09:26 AM
 
3 posts, read 2,984 times
Reputation: 13
Quote:
Originally Posted by mathjak107 View Post
now tell everyone how the monthly payments are pretty small compared to the equity in the house, the costs are very high and you can end up signing away the house and still not having enough money to live on.
Its funny, as somebody who actively originates reverse mortgages(don't worry no solicitations here!!) the monthly payments(called tenure by folks in the industry) are almost always disappointing. Most of the time monthly income is only acceptable if the property is free and clear or if the borrower is quite advanced in age...

Jason
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Old 09-15-2012, 09:34 AM
 
28,063 posts, read 31,098,350 times
Reputation: 9554
Since the OP made this their very first post one has to be mighty suspicious. Now if you want to be convinced of their intent go to their information and click on their home page and it will link you to:
Mortgage News, Mortgage News Daily, Current Mortgage News

Hmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Trolllllllllllllllllllllllllllllllllllllllllllllll llllllllllllllllllll
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Old 09-15-2012, 09:43 AM
 
3 posts, read 2,984 times
Reputation: 13
funny thing is that's a "no-follow" link, so they won't even get any link juice from it anyway! LOL...
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