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Old 03-08-2015, 11:19 AM
 
9,585 posts, read 8,890,950 times
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Quote:
Originally Posted by nicet4 View Post
Cash is King. I am sure we have all seen retired people living in a very nice housing while driving very nice cars but devoid of an cash there wasn't a lot they could do.

I like the idea of a condo but my psychological makeup would not fit well. I like owning my patch of dirt and if I want to hang pink curtains on my window I wouldn't tolerate someone telling me I couldn't. Nah, condo is out and I wouldn't like pink curtains anyway.

Leaving something for the kids? No way, I already did that. I raised them with everything they wanted and paid nearly everything it took for four years of college so they could live on their own and support themselves well. The only thing I made them do was take out a $1,250 student loan every semester so they would have some skin in the game. Other than that I paid for it all; tuition, books, apartment rental and even $100/week cash allowance all the way through four years so I owe them nothing and I've told them to expect nothing at my end.
Lol..never got this ..why pay 4 percent ? Unless you can make more than 4 percent in an investment..pay it off!

If you are worried about cash on hand, think of it this way..you can put the money you are not going to be paying to the bank with interest into a savings account each month/
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Old 03-08-2015, 11:21 AM
 
Location: delaware
688 posts, read 865,025 times
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Quote:
Originally Posted by mathjak107 View Post
many seniors are taking advantage of reverse mortgages to purchase. these are different from reverse mortgages you take on hmes you already own.

they require a large down payment of 1/3 to 1/2 but you never make another payment again. you do pay taxes and expenses but no mortgage payment.

the house is sold by the bank when you are no longer in it and anything left after payments of what is owed is given to heirs.


it can be the best of both worlds . getting a more expensive house in a better area and keeping cash.

i am toying with the idea myself since i would love to live in a building near our rental that is out of budget under conventional methods of purchasing an apartment and would take to much cash flow but the numbers will work if we do the above..

there are min ages for this.


i'm not familiar with the concept of reverse mortgages to purchase. can you explain in a little more detail? also, are only certain lending institutions offering these mortgages?

thanks for the information-

catsy girl
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Old 03-08-2015, 11:30 AM
 
71,684 posts, read 71,801,099 times
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here you go.

How to Buy Home HECM | Seniors Buy House | 4ReverseMortgageHelp | 4ReverseMortgageHelp.com
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Old 03-08-2015, 11:32 AM
 
Location: southwest TN
8,225 posts, read 14,940,197 times
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Quote:
Originally Posted by Escort Rider View Post
Where do you live that there are homes selling for $70,000? That is just mind-blowing.

W TN and MS
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Old 03-08-2015, 11:43 AM
 
12,708 posts, read 9,981,349 times
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Quote:
Originally Posted by CSRSJim View Post
One bad thing about any reverse mortage right now is the low interest rates.
The amount of money the lender bookkeeps is based on the prevailing interest rate. So a low rate gets the borrower a low amount of money. If interest rates were high (8-10%) then these products might be more appealing, IMO.
No, you have it backwards. Low interest rates mean higher payouts, because the present value of the final house sale is higher.

I think you are confusing HECM's with annuities. In the case of annuities, you get higher payouts at higher rates, because you are letting them use your money. In contrast, with a HECM, you are using their money (i.e. borrowing).
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Old 03-08-2015, 11:49 AM
 
Location: delaware
688 posts, read 865,025 times
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thanks!!
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Old 03-08-2015, 11:51 AM
 
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Good answers and their age ought not be a factor and it should be financially driven. We will be making another move soon and it might involve a home mortgage or not and that would be around age 70.
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Old 03-08-2015, 11:54 AM
 
71,684 posts, read 71,801,099 times
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come to ny buddy , lol
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Old 03-08-2015, 12:08 PM
 
29,782 posts, read 34,880,403 times
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Quote:
Originally Posted by mathjak107 View Post
come to ny buddy , lol
Born and raised there and no thank you. Most of my family is still there the rest have and are migrating to NC as there work careers end. Sorta funny in a way as we all got the same lecture as kids from our parents, aunts and uncles. All middle to lower middle or poor as kids now comfortably retiring to a T. Next spot or spots would be in the Northern Virginia to NC areas. Want a spot closer in with transportation etc and looking for eventual floor less or elevator living. Hard to give up our yard now. Darn hard. We looked at something the other week, nice at the beach and a town house nicely laid out but it would be more time there and we could only leave our primary house for so long now. The birds would miss us if nothing else and we hate coming back and having missed something in full bloom. Our landscape service does a great job and they are putting some more stuff in and we are excited.
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Old 03-08-2015, 12:12 PM
 
71,684 posts, read 71,801,099 times
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if i was to move out of ny one day i think the carolinas would be our choice.

one of our first retirement trips planned is photographing charlston and savannah.
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