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With a shrinking economy I see increasing numbers of commercials touting reverse mortgages for retirement cash flow. I do know these mortgages have hidden fees and high closing costs. Are any of you planning on getting a reverse mortgage as part of your retirement financial plan? Any experts out there to advise yea or nay?
An equity loan has to start to be paid back immeadiatly , that wouldnt accomplish the same thing....
a reverse mortgage is actually a balloon payment loan due at either your death or when the house is sold..... you also can never owe more then the house fetches as part of that fee money goes for insurance for the bank incase they get less then whats owed....
its very fee laden and isnt a great deal but non the less its there if you need it
An equity loan has to start to be paid back immeadiatly , that wouldnt accomplish the same thing....
a reverse mortgage is actually a balloon payment loan due at either your death or when the house is sold..... you also can never owe more then the house fetches as part of that fee money goes for insurance for the bank incase they get less then whats owed....
its very fee laden and isnt a great deal but non the less its there if you need it
So perhaps a niche audience of people who have a great deal of equity tied up or house paid off, little or no pension, i.e. struggling solely on Social Security only, and no relatives or friends to leave an estate to?
From what I have read if you take a reverse mortgage your estate(family) has to pay for it after you die. And the fees sound really high.
I would only do a reverse mortgage in two situations.
1. Desperation.
2. You have no one to leave your assets to.
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