Reverse Mortgage

[dtridess]

if one of you is still living in the home, the reverse mortgage usually stays fine. But if both of you move out permanently (like into a nursing home), the loan can come due and the house may need to be sold.

More info reverse.mortgage/leave-to-nursing-home

Overall, not a bad option - but really only makes sense when you actually need the funds.

 

[want@1070]

Use reverse motgage to pay out of line property taxes. Wisconsin is a tax he-- l My Wife and I , both 70 yr. Old
This is our worst expense. Food is cheap .

 

[Welding man]

What if you have a sizeable estate. Wife and I both the same age. No one to leave it to, if some unfortunate accident took us both out at the same time. We do not need the money now, but we could blow it on travel, vacations or whatever, leave a good chunk to charity and when we are gone, everything is taken care of. We are looking into it.

 

[miner09]

Don’t do it.

 

[paul]

I know this is an old thread.

Reverse mortgage….

This is a fancy wording for selling your house to this company, and they make payments to you on it.

There are various options for you to stay in the house, or buy it back again in the future. The contracts and wording are designed to make you feel good that you still have ‘your house.’

But you cashed out your equity in your house, and it is much more theirs than it is yours now.

You sold your house on installments.

This can be a tool for some people in some cases.

But be really careful you are getting advise from people that understand this and are thinking of you. Don’t rely on people who are trying to buy your house from you to advise you!

It would not be a first choice, best option, for most people.

Paul

 

[1948CaseVAI]

What if you have a sizeable estate. Wife and I both the same age. No one to leave it to, if some unfortunate accident took us both out at the same time. We do not need the money now, but we could blow it on travel, vacations or whatever, leave a good chunk to charity and when we are gone, everything is taken care of. We are looking into it.

Well it is your money to do as you wish. But for me I would consider willing it to a worthwhie charity. But I agree with you if you do not wish to donate to a charity/ I would put it in the fire pit before I would let the government (of any level) get ahold of it.

 

[WNYBill]

Reverse mortgage is like selling your life insurance, not good business. My investment councilor says if a bank wants to pick it up you are better off offering it to your heirs. They pay you but, in the end, get the insurance money or the real estate. For a few thousand they may get a lot of thousands. You are better off self-financing an annuity than going through a broker. "Lifetime use" usually supersedes "emanate domain". Estate planning is important.

 

[Stan Coryell]

Talked to a lady this morning from AGT about the reverse mortgage thing. Just wondering if anyone on here has had any experience with htem. Is it a good thing or bad thing?. We don't need the money right now but might in the future. Also wondering if one of us has to go into the nursing home sometime in the future, will this prevent the Nursing home from taking our home away from the one left behind. Not real sure I'm interested in doing this, just putting feelers out. Keith

John T, Mike, and Ron sum it up well. You'd be best to talk to a financial planner.

Two thoughts:

Advice is worth what you pay for it.

You won't know if you have a bad accountant (sub doctor or lawyer here) until it's too late.

Good luck.

 

[Jaden]

Questions to ask; Who pays the property taxes? Who is responsible for the upkeep on the home?