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I understand that there are cases where a reverse mortgage would be the best thing for some, however, I think these cases are few and I have never heard a good thing supporting one.
As someone else mentioned, the fees are extremely high. What if you want to move - you are in a lose lose situation - now you really have no equity.
Let's get real - would the banks be offering such a thing if it wasn't in their best interest, I mean, if they didn't plan on being big time winners in each case? Don't they already have more houses than they know what to do with and are costing them $$. If they are still offering reverse morgages in this economy, I would be real leary of such a thing.
I understand that there are cases where a reverse mortgage would be the best thing for some, however, I think these cases are few and I have never heard a good thing supporting one.
As someone else mentioned, the fees are extremely high. What if you want to move - you are in a lose lose situation - now you really have no equity.
Let's get real - would the banks be offering such a thing if it wasn't in their best interest, I mean, if they didn't plan on being big time winners in each case? Don't they already have more houses than they know what to do with and are costing them $$. If they are still offering reverse morgages in this economy, I would be real leary of such a thing.
The Government is backing these loans. You do have to be very careful, and maybe that been the problem all along, most people never read the small print , they just want to know what the monthly payments are.
In the end , everything goes back to the soil anyway , including your bones. I do not regret seeing the Government/banks wind up with past elderly relatives property, it was the only way out for them, to get proper health care and still survive...living in their homes, till the end.
We actually bought a home in the middle of January in the northeast. A lot of people showed up at the home's open house.
Another home I had in the northeast I sold in February and moved into a home that same month.
I've sold a home in the spring/summer in the northeast and didn't find it any better to sell.
The price you get for your home will be less in this market, but the home you will buy will also be less in this market.
I would say if you're happy with the price you can get right now and can retire to where you want, then go for it. Life is too short. If we wait too long, the time may never come.
We actually bought a home in the middle of January in the northeast. A lot of people showed up at the home's open house.
Another home I had in the northeast I sold in February and moved into a home that same month.
I've sold a home in the spring/summer in the northeast and didn't find it any better to sell.
The price you get for your home will be less in this market, but the home you will buy will also be less in this market.
I would say if you're happy with the price you can get right now and can retire to where you want, then go for it. Life is too short. If we wait too long, the time may never come.
Thanks for your encouragement. Questions:
- Did you feel your house wasn't being shown to best advantage, without the lawn and shrubbery and trees green?
- How did you handle people trooping through in their wet boots?
- Did you already have a place lined up to go to, or were you planning to rent after the sale of your house, till you found something?
- Did you get some really low offers from buyers thinking you were desperate b/c it was winter?
Maybe the only other thing is to move away and leave the house empty, take a reverse mortgage on it for many years and let it sit (minimally heated). What about that idea?
I believe I've heard it's very difficult to get homeowners insurance on vacant property. Good to check this out first. If the place burns down, you'd have nothing.
Last edited by staywarm2; 09-12-2010 at 08:22 PM..
Did you also count what it would have cost to actually replace that home by having to rent of one eqaul to it? Afterall you have to have some place to live and inflation strikes all places to live.If your still in the same position then you are pretty much the exception to the rule.
Yes, if you add in the rent I would have paid all of those years (actually...decades) and then subtract what I paid in net monthly payments (meaning I am considering the payment after the tax deduction impact), I'm still significantly in negative territory after 34 years.
Plus, when you factor in inflation, the financial impact of home ownership has been nothing short of a disaster.
Yes, if you add in the rent I would have paid all of those years (actually...decades) and then subtract what I paid in net monthly payments (meaning I am considering the payment after the tax deduction impact), I'm still significantly in negative territory after 34 years.
Plus, when you factor in inflation, the financial impact of home ownership has been nothing short of a disaster.
Interesting and not good news. I'd like to see the math on this!
It depends a lot on where and when you buy. A lot of people have made a living flipping homes. many still do , only now they are more into rental properties.
Over the years , I have built 3 homes and did an expensive remodel also. Over all I would say I came out ahead. First house on a Florida beach, trippled my money in 6 months, second house in NC mountians built for 150 , sold for 500 , but that took 18 years , so maybe not so big a profit., remodel , in Mi., broke even, third build in U.P. living in now , over budget but no mortage.
The bottom line is , I got what I wanted , was able to be creative , and did not have to live in someone elses mess, that means a lot. Building your home is the only way you will ever get what you really want, and maybe actually turn a profit.
- Did you feel your house wasn't being shown to best advantage, without the lawn and shrubbery and trees green?
In some ways, I think I had more people looking at my home during the winter months because during the summer they were busy doing other things. I don't think it mattered that things weren't green. If this concerns you, when my dad sold his place, he had pictures of what the house/yard, etc. looked like in the spring/summer.
- How did you handle people trooping through in their wet boots?
There was a rug/towel put down where people could remove their boots/shoes to walk through the house. I've had to remove my shoes even in good weather because people didn't want their carpet getting dirty.
- Did you already have a place lined up to go to, or were you planning to rent after the sale of your house, till you found something?
I had a home to go to when my home sold. On both occasions, the people I was buying from let me rent the home for a few days or even up to a week until my home closed. It was written up in a contract.
- Did you get some really low offers from buyers thinking you were desperate b/c it was winter?
I think no matter when you sell, you are always going to get people giving you low offers; it doesn't matter on the weather. I've never let buyers know how much of a hurry I'm in to sell. If they ask your realtor, your realtor should just say you have a place to stay so it doesn't matter when you sell.
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Questions:
Homeowners Insurance - Vacant House
