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Old 10-18-2009, 11:49 PM
 
11,228 posts, read 11,254,000 times
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Reverse mortgages are indeed the court of last resort.
1. 15k in fees upfront
2. banks only loan about 1/3 the amount of equity and then pile up the interest over the course of the loan until the other 2/3's equity has been eaten up. Then they wait like vultures for you to have a coronary.
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Old 10-22-2009, 05:15 PM
 
Location: North Carolina
531 posts, read 1,804,957 times
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I know it's been a few days since this topic was discussed, but I noticed that no one mentioned credit unions. Our local credit union offers reverse mortgages with substantially lower fees than any other I've ever seen. Take a look at the credit unions in your area, if considering any kind of mortgage or debt, as their rates and terms tend to be more favorable for the consumer.

Just a thought that might help someone.
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Old 10-22-2009, 06:28 PM
 
48,516 posts, read 83,890,268 times
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Quote:
Originally Posted by thrillobyte View Post
Better to just sell the house and (here's the secret) carry the paper just like banks do. One can potentially DOUBLE their principle through amortization.
Most do not want to carry the note has they are not like a bank using others moeny to do that. most banks endup selling the note and those that carry it hedge their chances by making you buy their insurance.
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Old 05-23-2013, 09:33 AM
 
Location: Irvine, California
55 posts, read 107,018 times
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Quote:
Originally Posted by thrillobyte View Post
Reverse mortgages are indeed the court of last resort.
1. 15k in fees upfront
2. banks only loan about 1/3 the amount of equity and then pile up the interest over the course of the loan until the other 2/3's equity has been eaten up. Then they wait like vultures for you to have a coronary.
1. Shop Lenders for fees - many are like me and can structure the loan with no fees.
2. Only 1/3? Are you kidding? Its never been that low.

And the part about the vultures is ridiculous. Most Reverse Mortgage Lenders are very caring people and are in the Profession to help others.
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Old 03-21-2015, 04:22 PM
 
Location: Whereever we have our RV parked
8,761 posts, read 7,693,193 times
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They're out to make money, no matter what they say, and it will cost you money. Its likely set up so that they are guaranteed to make money which means you're guaranteed to lose money.
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Old 03-21-2015, 09:51 PM
 
8,820 posts, read 5,119,154 times
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Quote:
Originally Posted by augiedogie View Post
They're out to make money, no matter what they say, and it will cost you money. Its likely set up so that they are guaranteed to make money which means you're guaranteed to lose money.
What difference does that make if it is money that you need? If you have enough capital without one, great. If you don't, that's another story.
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Old 03-22-2015, 03:13 AM
 
71,463 posts, read 71,652,652 times
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the typical problem is it ends up being alot less money than most people think or in some cases need as fees ,insurance and reverse compounding interest work against them.
that reverse compounding interest can be killer.


even here in long island with the typical home worth more than 500k it can be quite painful.

On a $250,000 lump-sum in ten years the balance will climb to $465,841. Assuming 3% home price appreciation, that would leave about $72,000 in equity based on a home's $537,566 value. In 20 years, the loan balance would reach $868,031, exceeding the home's $722,444 value.

if you do not take a lump sum the way they distribute the money can leave you short . they usually use age 100 or 105 and divide the money over those ages less your age.

that can really cut the yearly payments down to alot less than you needed.
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